The agency plans on virtual asset definition after resisting overseeing the industry in the past.
The Brazilian SEC (Securities Exchange and Commission) is initiating changes in the nation’s legal framework concerning cryptocurrency regulation.
However, local media revealed that the primary concern is the mentioned bill doesn’t seem to consider tokens as securities or digital assets.
That means they would not fall under SEC rules. The revised position of the country’s SEC came after a new board appointment and surged crypto industry relevance in Brazil’s financial services.
Meanwhile, Brazilian regulators have worked on crypto regulation since 2015, though the Senate only authorized the bill’s final version in April this year.
Brazil Congress will send it to the president after finishing the final revisions. Meanwhile, the president would sign it into a new law.
Bill’s Digital Asset Definition
The approved text describes virtual assets as a virtual depiction of value that users transfer or trade electronically and using them for investment or payment purposes.
Moreover, it highlights the KYC (Know Your Customer) policies to prevent cases such as money laundering.
Also, the bill considers non-fungible tokens (NFTs) as securities, whereas most other assets see a debate about their preferable category.
Brazil’s SEC representative stated that the crypto bill requires improvements, including virtual assets definition, prior consent requirements, and business combinations approval in terminated roles with the Brazilian Fed Trade Commission (Cade).
Meanwhile, legislatures believe the president can solve the issue.
They trust a resolution might be sending the bill to the Brazilian president to determine what roles the SEC and the Brazilian Central Bank should undertake when authorizing ICOs (initial coin offerings) and monitoring the marketplace.
Nevertheless, some legislators perceive this act as legal uncertainty, stating that the nation should introduce a new bill. Meanwhile, the Brazilian Congress received another crypto-related bill in June.
Approval would mean granting the use of crypto as a payment option while preventing the court from taking private keys. The law’s draft awaits the legislator’s committee review.
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