New regulation only the first step for crypto assets in Brazil

The month of June marked a legal milestone for crypto regulation in Brazil, with the issuance of a presidential decree on June 14 that regulates a 2022 law known as the Legal Framework for Crypto Assets. The new legislation went into effect on June 20. 

This is just the latest effort to strengthen digital regulation in the country, following other initiatives such as data protection regulation, efforts to discuss content moderation, and a newly proposed artificial intelligence law, among others. But what, if anything, does this latest development mean?

The most important aspect of the new legislation is that it establishes rules for crypto asset operators in Brazil. 

Broadly speaking, the previous regulatory framework lacked relevant provisions on the requirements for these types of companies to operate in Brazil, including how to structure compliance programs, how to conduct money laundering prevention, and how to apply cybersecurity rules, among others. 

Naturally, consumers will now tend to be more protected, but the regulatory framework will benefit companies as well. After all, there will be less...