Brazilian Government Preparing New Decree to Clarify Cryptocurrency Rules

The Brazilian government is preparing to issue a decree to fill in the gaps left open by the recent adoption of the cryptocurrency law. The document, prepared by the Ministry of Finance, will establish the areas of supervision and responsibility of the Central Bank of Brazil and the National Securities Regulator (CVM).

The Brazilian government will issue a new decree on the regulation of cryptocurrencies

Members of the Brazilian government are working to expand the cryptocurrency regulations established by the Cryptocurrency Law, sanctioned on Dec. 21 by outgoing President Jair Bolsonaro. In accordance with reports from local media, the Ministry of Finance is working on a regulation to fill in the gaps that have not been addressed in the general wording of the law. The document must be reviewed by executive aides to President Luiz Inacio “Lula” da Silva before it is approved.

The document is being prepared by Treasury Department Executive Secretary Gabriel Galipolo and Economic Reform Secretary Marcos Pinto with the help of technicians from Brazil’s Central Bank and the national securities regulator. This decree will divide the responsibilities for cryptocurrency oversight between the two institutions, giving them clear objectives and market areas to pay attention to.

Incoming dispositions

The new document will entrust the Central Bank of Brazil with the task of organizing and supervising the behavior of cryptocurrency exchanges in Brazil, with particular attention to verifying their compliance with the rules described in the law. Virtual Asset Service Providers (VASPs) will receive rules similar to those currently in place for banks.

Meanwhile, the new definitions will place the Brazilian securities regulator at the top of tokenized securities by analyzing whether each tokenized asset is a security. The organization will create a new unit dedicated to this task, the oversight of digital assets.

The move is in line with statements by former law rapporteur Expedito Netto regarding the future of the law and amendments that the government of Luiz Inácio “Lula” da Silva, Brazil’s current president, announced back in January.

Another important topic that the government will try to include in this decree will be the issue of asset sharing. The item, which implies that exchanges will have to separate their assets from assets held by their users, was proposed while the bill was still being discussed. However, it did not become part of the law’s final document due to congressional controversy.

What do you think of the new decree the Brazilian government will issue to amend the recently passed cryptocurrency law? Tell us in the comments section below.