Brazil Central Bank Crafting Crypto Regulation Plan, Expected by Year’s End

Brazil’s central bank has revealed a multi-phase strategy to regulate cryptocurrency and virtual asset service providers, intending to finalize the regulatory framework by the year’s end.

These regulations will establish guidelines to ensure and enforce increased transparency regarding the potential benefits and risks associated with these investments, the bank stated. It opted for a phased approach to effectively oversee Brazil’s cryptocurrency service market.

“The contributions received will be utilized as we proceed, and the regulatory proposals are slated for completion by the end of 2024,” the bank added.

Reuters reported that the central bank’s recent decision delays the finalization of the process, following a 2022 law granting the bank authority to formulate these regulations.

During a congressional hearing in the previous year, Otavio Damaso, the central bank’s director of regulation, anticipated completing the crypto regulations by June 2024.

In December 2023, the bank conducted a public consultation on the matter, concluding in January. Subsequently, it announced a new public consultation scheduled for the latter half of this year.

The central bank informed Reuters that the initial consultation aimed to gather feedback from the public on the proposed regulations, also addressing aspects not covered by the 2022 law, such as the segregation of assets by virtual asset service providers. To this end, the first public consultation necessitated “considerable dedication from the involved teams.”

Additionally, the bank is progressing with the regulation of stablecoins, especially those utilized for payments and foreign exchange.

Brazil Restricts Crypto Contributions in Elections
In an effort to curtail cryptocurrencies’ role in campaign finance, Brazilian authorities recently enforced a ban on crypto donations to political parties and candidates.

The electoral court defended this ban, underscoring the importance of transparency and traceability in campaign financing. It reiterated its commitment to safeguarding elections “against irregular or illicit practices.”

Source: cryptonews.com

Hello there! I'm a 21-year-old university student majoring in Finnish and Korean Language and Literature. I have a deep passion for art and a profound connection to the natural world. My journey through life has been a colorful one, driven by my love for creativity, music, and the wonders of the great outdoors. As a dedicated student, I've already earned a degree in Classic Cantos, a testament to my appreciation for the timeless beauty of classical music. Beyond the classroom, my artistic spirit thrives through my love for painting and drawing. These creative outlets allow me to express my thoughts and emotions, transforming blank canvases into vibrant stories. My interests go far beyond music and art. Singing, playing the piano, and exploring new melodies are integral parts of my life, providing me with both solace and exhilaration. When I'm not immersed in the world of art and music, I find solace in nature's embrace. My heart is drawn to animals and the serene beauty of the natural world, fueling my desire to protect and preserve our precious environment.
Hipther

FREE
VIEW