- The Brazilian SEC is planning to work on the definition of virtual assets.
- Reportedly, the agency will change the legal framework to the Brazilian crypto regulation.
Crypto Framework Upgrade by Brazilian SEC
The major concern that the local media indicated is that the bill in question does not appear to be considered tokens as digital assets or securities, hence it would not come under the SEC regulations.
While as per the updated position of Brazil’s SEC it includes the appointment of a new board and the increased relevance of the crypto sector in its financial services.
Since 2015, Brazilian lawmakers working on crypto regulations, then also the Senate only approved the final version of a bill in April 2022. After the final revision by Brazil’s Congress, the bill will be sent to the President, who will sign it into law.
The Description of Virtual Assets, as per “The Bill”
According to the approved text, a virtual asset is a digital representation of value that can be traded or transferred electronically and used for payment or investment purposes. It framework the best practices for Know Your Customer (KYC) processes and sets up methods to prevent money laundering.
While the non-fungible tokens (NFTs) cannot be considered securities, most other tokens are in the middle of discussions about whether they are.
A representative of the Brazilian SEC, elaborated in a local newspaper that “The mentioned bill needs specific improvements, including the definition of virtual assets, prior authorization requirements, and the approval of business combinations in redundant roles with the Cade [Brazilian Federal Trade Commission].”
It must be noted that the legislators suggest that a possible resolution would be to send the bill to the president through decree about the role of the Brazilian Central Bank and the SEC expected to act in authorization of initial coin offerings and market-based regulations.
Source: https://www.thecoinrepublic.com/2022/09/03/brazilian-sec-will-change-its-legal-framework-of-crypto-regulation/