The President of Brazil, Luiz Inácio Lula da Silva, has just enacted a law aimed at regulating crypto businesses. This initiative aims to clarify the roles of financial authorities. But not only ! It also makes it possible to reinforce the security of investors and consumers.
Regulation of crypto companies entrusted to the Central Bank of Brazil
Since the beginning of the year, Brazil has been chaining strategies aimed at adopting crypto solutions. Still in the same vein, the President of Brazil Luiz Inácio Lula da Silva signs a law Who will regulate crypto businesses.
The purpose of this approach: to clarify the roles of the different financial authorities in crypto regulation in Brazil.
According the government decree No. 11,563 signed by President Lula on June 14, the Central Bank of Brazil has full powers over the supervision of virtual asset service providers. This measure allows this entity to better control crypto activities. At the same time, it will ensure the protection of investors and consumers.
The Comissão de Valores Mobiliários (CVM) maintains its role
Also according to the new presidential decree, the Comissão de Valores Mobiliários (CVM) will continue to manage many token projects that are considered titles. This is Brazil’s securities regulator.
This decision therefore maintains the responsibility of the CVM in the supervision of tokens considered as financial securities. This allows to preserve the integrity and transparency of Brazilian financial markets. At the same time, it guarantees the compliance of the companies issuing these said tokens or tokens.
The decree will come into effect on June 20. It will not impact existing consumer protection and financial crime laws. In fact, it is part of the Brazilian central bank’s initiative to test CBDC with major payment companies.
The new regulations reflect the government’s commitment to improving the crypto world in Brazil. He wishes establish a safe and transparent environment while continuing its efforts in the field of the CBDC.
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