Brazil Drafting Decree to Already Enacted Crypto Regulations

• The Ministry of Finance is drafting a decree to rectify some of the ambiguities.
• The Central Bank of Brazil will be charged with overseeing cryptocurrency exchanges.

There is an effort afoot to broaden the scope of Brazil’s recently enacted cryptocurrency regulations. Which were signed into law by departing President Jair Bolsonaro on December 21. Reports from regional media suggest that the Ministry of Finance is drafting a decree. To rectify some of the ambiguities that arose from the law’s overarching structure. Before it can be approved, the paper must be evaluated by President Luis Inacio “Lula” Da Silva’s executive staff.

Experts from the Brazilian Central Bank and the country’s securities regulator are helping write the document overseen by Gabriel Galipolo, executive secretary of the Ministry of Finance, and Marcos Pinto, secretary of economic reforms. 

Increased Regulatory Scrutiny

Under this order, the regulatory burden for cryptocurrencies may be split between two distinct entities. Each with a specific focus on certain aspects of the industry or market.

Moreover, the Central Bank of Brazil will be charged with arranging and overseeing the actions of cryptocurrency exchanges in Brazil, with an emphasis on ensuring that they operate in accordance with the law’s stipulations. In the future, VASPs will be subject to restrictions that are comparable to those presently imposed on traditional financial institutions.

Meanwhile, with the new criteria in place, the Brazilian securities regulator would be able to determine whether or not any tokenized asset is a security. The management of digital assets will be handled by a whole new department inside the organization.

Furthermore, this action is in line with what former rapporteur Expedito Netto said about the law’s future and the changes that the administration of President Luis Inacio “Lula” Da Silva announced in January.