Brazil’s regulator announces Cryptocurrency regulations

Nascimento revealed that local cryptocurrency growth will not be stifled by the Securities and Exchange Commission restrictions.

In “the next few days,” according to the director of Brazil’s financial markets regulator, the organization will issue a “decree” that will allow government-appointed entities to better monitor the sector.

According to O Globo, Head of the Securities and Exchange Commission (known in Brazil as the CVM) Joo Pedro Nascimento declared that “cryptoeconomics” would coexist with “the traditional economy.”

Additionally, he stated that the order will likely empower the CVM the authority to determine which tokens are securities.

The CVM is anticipated to begin “regulating all crypto assets that meet the criterion of security,” as reported by the news source.

Nascimento was cited as having said:

“Whenever something touches on the field of securities, it will fall under the remit of the CVM.”

It is anticipated that the Central Bank will serve as the regulatory agency for tokens that are not classed as securities. The CVM director noted that crypto regulation has been “very warmly welcomed” by the industry thus far.

Nascimento said that the CVM is also concentrating on the Open Capital Market decentralized finance (DeFi) project. He noted that the CVM was collaborating with the Central Bank on the project.

He elaborated:

“We are going to bring decentralized finance to the capital market. It will start with the transfer of custody of funds.”

The regulatory leader anticipated that Open Capital Market would launch this year. Late last year, Nascimento stated that the CVM’s restrictions will not impede the development of the domestic cryptocurrency sector.

The CMV chief declared at the time that his mission was to “encourage the growth of the crypto area” and to avoid creating “laws” that would “suffocate” the industry.

The Central Bank stated last month that it was also seeking to tighten crypto laws. In addition, it asserted that its central bank digital currency (CBDC) project, the digital real, will aid in the development of domestic enterprises.

The bank asserted that whereas other nations were developing CBDC models with a focus on retail, the digital real was being created with the goal of accelerating the growth of small companies.