Reportedly, the Brazilian Securities and Exchange Commission (SEC) is aiming for changes in the country’s legal framework with regard to cryptocurrencies, as reported by Cointelegraph.
According to Cointelegraph, the local media of the country has portrayed one of the concerns being the bill not taking into account tokens as digital assets or securities, and therefore not falling under SEC regulations. This update comes after the appointment of a new board and reported increase in relevance of the cryptocurrency sector in the country’s financial services
On the basis of information by Cointelegraph, Brazilian lawmakers have been working on cryptocurrency-based regulations since 2015 but the senate’s approval was received only after the final version of a bill in April, 2022. After Brazil’s Congress gets done with its final revisions, the bill will be signed by the country’s president for it to be signed into law. Going by the approved text, a virtual asset is a digital representation of value which can be traded or transferred electronically, and used for payment or investment purposes. Moreover, it emphasises the importance of practices for Know Your Customer (KYC) protocol and helps in the drafting of methods to avoid money laundering. As per the bill, non-fungible tokens (NFTs) are also not considered as securities, while majority of other tokens are yet to get the recognition.
“The mentioned bill needs improvements, including the definition of virtual assets, prior authorisation requirements, and the approval of business combinations in roles with the Cade [Brazilian Federal Trade Commission],” a Brazil’s SEC representative said.
Moreover, Cointelegraph noted that legislators believe that a possible resolution could be to send the bill to the president through decree what roles the Brazilian Central Bank and the SEC are expected to act in authorisation of initial coin offerings and market-based regulations. In June, another bill pertaining to cryptocurrencies was sent to the Brazilian Congress for approval.
(With insights from Cointelegraph)