According to legislators, a potential solution might be for the bill to be sent to the president so that he may determine what roles the Brazilian Central Bank and the SEC should play in approving initial coin offerings and regulating the industry. This approach is considered by some legislators to be a legal grey area, as they believe that a new law should be created. In June, another cryptocurrency-related bill was submitted to the Brazilian Congress. If passed, the bill would grant cryptocurrency the right to be used as a form of payment while safeguarding users’ private keys from being seized by the courts. The law is currently being reviewed by the lawmakers’ committee.
According to reports, the Brazilian Securities and Exchange Commission is pursuing changes in the country’s legal framework with regard to its regulation of cryptocurrencies.
According to local media, one major concern with the bill in question is that it appears to neglect tokens as digital assets or securities, therefore not subject to SEC regulation. The increased prominence of the crypto sector in the financial services industry in the nation is associated with the appointment of a new board and an updated position from the SEC.
Since 2015, Brazilian lawmakers have been working on cryptocurrency regulations, but the Senate only finalised the bill in April 2022. Once the Congress finishes its final revisions, the bill will be sent to the country’s president, who will sign it into law.
A virtual asset, as defined in the approved text, is a digital representation of value that can be traded or transferred electronically and used for payment or investment purposes. The bill also sets up KYC procedures and prevents money laundering, in addition to defining non-fungible tokens (NFTs). While most other tokens are currently being debated whether they are securities or not, NFTs are not.
The local paper received a note from the Brazil Securities and Exchange Commission saying:
“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].”
Some legislators believe that a possible solution would be to send the bill to the president to pick which roles the Brazilian Central Bank and the SEC play in regulating initial coin offerings and the market. Some legislators believe that introducing an entirely new bill would be a legal uncertainty. In June, another cryptocurrency bill was introduced to the Brazilian Congress. If passed, the legislation would allow cryptocurrency to be used as a form of payment while protecting private keys from being seized by the courts. A draft of the law is currently being reviewed by the legislators’ committee.
