The Brazilian SEC Pursues Changes in Crypto Regulation
- Brazillian lawmakers, including the SEC, have been working towards regulating the crypto market since 2015.
- Brazil has one of the most active crypto markets in South America.
- The new crypto regulation bill redefines virtual assets and the punishments for defaulters.
According to local reports, the Brazilian Securities and Exchange Commission is working to reform the nation’s legislative system to better regulate cryptocurrencies. The country’s proposed crypto bill does not regard tokens as securities or digital assets. This places tokens outside the SEC’s jurisdiction. The change in the SEC’s role in crypto regulation comes after the appointment of a new board and the growing influence of cryptocurrencies in the South American nation.
The Brazilian crypto market is one of the most active in the region. However, local legislators have been working on cryptocurrency regulations since 2015, but the Senate didn’t pass the final revision until April 2022. The bill will be delivered to Brazil’s president for his endorsement after Congress completes its final adjustments.
The bill, which redefines the concept of digital assets, has left the SEC in doubt about its role in the crypto space. Legislators have sought clarity over the roles of the SEC and the Brazilian Central Bank in crypto regulation.
The bill places crypto legislation under the care of the executive branch of the government. In addition, the executive branch can choose to delegate jurisdiction to the SEC or the Brazilian Central Bank or create a new regulator.
Despite taking measures to regulate the crypto industry, the Brazilian government views crypto as a part of its economic plans and intends to attract foreign investors to boost the local markets.
The president of the Central Bank of Brazil, Roberto Campos Neto, previously stated that crypto regulation efforts were done to enhance security and not curb innovation. Roberto revealed plans to integrate regulation and the crypto industry in a way that other central banks have not done. He said,
In general, central bankers want to regulate with a heavy hand. I understand, but I don’t agree. Maybe it’s a mistake to regulate like that … We shouldn’t leave behind the technological advances that will come with this.
If crypto regulations are implemented locally, Brazil, Latin America’s biggest nation, would join other nations on the continent in establishing clear principles and rules regulating the new asset class. Residents of Latin American countries are amongst the biggest users of cryptocurrencies. In September 2021, El Salvador made history by becoming the first government in the world to accept Bitcoin as legal cash. Despite Bitcoin’s price slump, the country has remained confident in its investment in the asset.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
