Welcome to our Tech Roundup, where we bring you the biggest stories in technology and innovation in Brazil and Latin America. This week: Expectations for crypto regulation under the Central Bank’s purview.
Brazil likely to equate crypto exchanges with fintechs
The Brazilian Central Bank has just been named as the regulator for the country’s cryptocurrency market, which means that the implementation of the sector’s legal framework approved last year will be under the monetary authority’s purview.
The somewhat generic law, which goes into effect on Tuesday, requires the Central Bank to outline practically everything regarding the licensing and oversight of virtual asset service providers (VASPs) — as crypto platforms, exchanges or otherwise, are known.
State of play. Five experts told The Brazilian Report that the Central Bank is already talking to several stakeholders and will not take long to submit for public comment a draft rule on the licensing process, focusing on three key aspects:
- Risk management, which includes rules for periodic audits and reports to bodies such as the anti-money laundering enforcement agency Coaf;
- Prudential capital requirements, and
- Rules designed to enhance investor protection.
Fintech-like approach. Most believe that the monetary authority will demand of crypto players what it already demands...
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