- Brazil’s Central Bank will regulate and monitor virtual asset service providers
- The decree will take effect June 20
Brazilian President Luiz Inácio Lula da Silva, has signed a bill on the country’s Central Bank’s role in regulating the cryptocurrency sector. The order grants powers to the Central Bank to regulate and control service providers in the field of virtual assets. In addition, it guarantees that the national securities regulator will continue to regulate many tokens.
Urder No. 11.563 was signed on June 14.. It allows the Central Bank of Brazil to regulate and control virtual asset service providers. according to the documents, many token projects that are considered securities will continue to fall under the jurisdiction of Comissão de Valores Mobiliários (CVM), the Brazilian equivalent of the U.S. Securities and Exchange Commission.
CVM aims to create a more adapted regulatory framework that will take into account the volume of cryptocurrency trading in the country as well as in markets. According to the announcement, the decree will take effect on June 20 and will not conflict with laws related to consumer protection and financial crime.
Brazil has recently become an increasingly cryptocurrency-friendly country.. It has one of the largest markets in South America and has licensed foreign payment providers, notably Crypto.com and Bitso. In March, the U.S. cryptocurrency exchange Coinbase announced a partnership with local companies to make cryptocurrency purchases available to Brazilians.