June 15, 2023

Brazilian President Inks Decree on Regulating Crypto in Country

Crypto in Brazil

Crypto in Brazil

Brazilian President Luiz Inácio Lula da Silva signed a decree on organizing the role of the country’s central bank and securities regulator in the crypto industry.

The Brazilian president inked decree no. 11.563, establishing rules under a December 2022 law on a legal framework for crypto and virtual assets in Brazil. Under this legislation, the Central Bank of Brazil is authorized to regulate and supervise virtual asset service providers in addition to ensuring that token projects would qualify as securities under the purview of the Securities and Exchange Commission of Brazil.

The decree will be in force as of June 20 without an impact on certain laws on consumer protection and financial crimes, according to Cointelegraph. The Brazilian Securities and Exchange Commission seeks to create a better crypto regulatory framework that is supposed to be commensurate with the volume of crypto trades in the country.

The Brazilian decree comes following reports about the participation of local and global companies in the upcoming Brazilian central bank digital currency (CBDC) pilot project as the Brazilian central bank announced it would start including the companies in the digital real platform around the middle of June 2023. Visa and Mastercard are among the global companies

The Brazilian CBDC pilot was officially announced in 2022. The value of digital real would be pegged against the national fiat currency, the real. It would have a fixed supply and be minted over time.

Brazil is considered one of the largest crypto markets in South America as it is the home of the crypto exchange Mercado Bitcoin. It also gave licenses to foreign payment providers, including Crypto.com and Bitso. Also, crypto exchange Coinbase announced in March that it would expand its operations in Brazil through partnerships with local services to offer crypto purchases for Brazilian residents.

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