News

Brazil Enacts New Law To Regulate Crypto Companies From June 20

Key Points:

  • Brazil passed legislation governing cryptocurrency and designated the central bank as the regulator with authority over who may engage in the market.
  • Virtual asset service providers must operate under the authority of the central bank.
  • The bill will take effect on Tuesday, June 20.
According to portaldobitcoin, Brazil enacted cryptocurrency legislation that designated the central bank as the regulator with authority to allow who may operate in the market.
Brazil Enacts New Law To Regulate Crypto Companies From June 20 4

The order that governs the implementation of the Bitcoin Law in Brazil was released on Wednesday, designating the Central Bank as the sector’s regulating agency. Virtual asset service providers must operate under the authority of the central bank. The President of the Republic, Luiz Inácio Lula da Silva, the Minister of Economy, Fernando Haddad, and the President of the Central Bank of Brazil, Roberto Campos Neto all signed the bill. It will take effect on Tuesday, June 20.

The Central Bank of Brazil also has the authority to oversee the sector’s operation. The language makes it obvious that the Securities and Exchange Commission (CVM) attributions were kept. In circumstances when virtual assets are structured as securities, the entity will be in charge of regulation.

Brazil Enacts New Law To Regulate Crypto Companies From June 20 5

The publishing of a decree by the Executive Branch specifying several aspects was absent after the bill was approved. The key issue was determining which entity would be the sector’s regulator. President Lula assigned the Central Bank to this position since the body has shown interest in themes like blockchain and Web3 for some time and is heavily engaged in the establishment of Real Digital (CBDC), which may be regarded as a sort of cryptocurrency.

Brazil Enacts New Law To Regulate Crypto Companies From June 20 6

Nonetheless, several points have already been established. A virtual asset, according to the legislation, is a digital representation of value that may be sold or transferred electronically and utilized to make payments or for investing reasons. This definition excludes domestic and international fiduciary currencies, shares, and loyalty and mileage schemes.

Several international firms now operate in Brazil without having official headquarters there. The Central Bank will have numerous responsibilities and capabilities as a regulator. It will have the authority to allow the operation of the crypto firm, as well as the transfer of control, merger, and spin-off.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Gate.io Launches USDE Financial Products with Annualized Returns of Up to 54%, Ushering in a High-Return Era for Stablecoin Investments

Nov 18th, Panama - Gate.io, a global leader in digital asset trading, has officially unveiled…

39 minutes ago

Bitdeer Convertible Notes Worth $360 Million Offered for Expansion Efforts

The Bitdeer convertible notes offer a 42.5% conversion premium, allowing conversion into cash with the…

1 hour ago

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

2 hours ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

3 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

4 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

5 hours ago

This website uses cookies.