Tech roundup: Brazil kickstarts crypto asset regulation

Welcome to our Tech roundup, where we bring you Brazil’s biggest stories on technology and innovation. This week: The groundwork for regulating the crypto market in Brazil is in place.  

Brazil kickstarts crypto asset regulation

Brazil’s Congress approved a bill establishing the basic guidelines for regulating crypto assets (not just cryptocurrencies) in Brazil. After being signed by President Jair Bolsonaro, the new law will come into effect in six months.

State of play. Although it lays the basic rules — such as the need for a license for exchanges to operate in Brazil — the legal framework is overly generic. It only establishes the foundations for oversight work from the Securities Commission (CVM) and allows for more in-depth regulation by the Central Bank.

No immediate change. The details for obtaining licenses are still to be decided on next year by the supervisory body appointed by the Executive, most likely the Central Bank. Until these rules are released, cryptocurrency brokerages that do not have a presence in Brazil can continue to operate.

• The Central Bank will lead public hearings to discuss pertinent issues, such as the minimum capital required to operate in Brazil and the rules for periodic audits in the segment, among other possible conditions for authorizing exchanges in the country.

Why it matters. The law brings basic rules that prevent money laundering crimes and establishes minimum conditions for competition between national and international platforms.

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