Brazil’s government passed a decree that gives the Central Bank (BC) and the Securities Commission (CVM) the task of supervising the crypto market in Brazil.
The CVM will be in charge of assets considered securities, while the BC will be in charge of most of the attributions, including determining the rules to be observed by exchanges and parameters for granting operating licenses, in addition to overseeing these companies.
The cryptocurrency law comes into force in June, but with reduced immediate effect, as the specific rules aimed at the sector will still be designed by the BC. For lawyer Isac Costa, partner at Warde Advogados and professor at Ibmec and Insper, the first draft of the rules for exchanges could still take six months to a year to be released, and the first regulated brokerage could take two years.
In a statement, the CVM stated that the authorization for virtual asset service providers does not cover activities related to securities, and highlighted that it will continue to supervise companies that deal with tokenization of assets.
“The CVM reiterates the importance of maintaining a broad dialogue with the crypto market, especially with those initiatives that aim to tokenize securities, for the purpose of building a regulatory framework that is increasingly conducive to the characteristics of these assets,” said the president of the CVM, Joao Pedro Nascimento.
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