Central Bank of Brazil will present new regulatory framework for cryptocurrencies at the end of the year – DiarioBitcoin

According to the entity, the process is divided into several stages that will be addressed in these months, including a new public consultation. They hope to have a regulatory proposal ready before the end of 2024.

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• Central Bank of Brazil will present regulatory proposal for cryptocurrencies at the end of 2024
• The process will be divided into several phases, and will begin with a second public consultation
• The key objective is to ensure proper protection of investors, as well as closing the way for illicit practices.
• A first regulatory plan was expected by the middle of this year
• This announcement is part of the Brazilian government’s efforts to regulate cryptocurrencies.

He Central Bank of Brazilthe main monetary policy authority for the South American nation, reported that it will reveal details about the new regulatory framework applicable to cryptocurrencies later this year.

Regulatory proposal for the end of 2024

According to reports published by the news agency Reuters and other specialized portals, the entity reported that the development of the new regulatory framework will be divided into several phases, and that they will present proposals by the end of 2024 depending on the evolution of the process.

As indicated andl Central Bankthe presentation of a regulatory framework must go through certain phases, and one of them will be a second round of consultation on virtual asset service providers (VASP), with which they will review some rules that they must comply with and the corresponding authorization that will apply in said case.

In addition to the aforementioned, a complementary framework will also be designed that “include prudential regulation and requesting reports from VASPs.” The key objective of the process is to establish mechanisms that ensure the protection of investors, while mitigating the proliferation of cryptocurrency scams and frauds.

Let us keep in mind that at the end of last year, the central bank launched a consultation on aspects related to cryptocurrencies, where opinions were requested on aspects such as asset segregation, risk management, cybersecurity and mechanisms for reporting operations.

As indicated Reuters, the new plan presented by the central bank It slightly delays the time frames originally contemplated for crypto regulation in Brazil, since the director of the entity’s regulatory area, Otávio Dámaso, anticipated that the legal proposal could be ready by the middle of this year.

On the other hand, a report from the media The Block highlights that the sector VASP Awaits with special interest greater regulatory clarity, since much clearer rules applicable to entities that wish to issue tokens, as well as those that market this type of assets in Brazilian territory, are needed.

Brazil and cryptocurrencies

The announcement of central bank It comes in the midst of Brazil’s efforts to regulate and channel cryptocurrency operations, due to the boom and adoption seen among residents.

Recently, the Brazilian Ministry of Financethrough its Prizes and Betting Secretariat (SPA), ruled that entities that operate sports betting services are no longer allowed to operate with cryptocurrencies, so they must only refer to the specified fiat alternatives for deposits, withdrawals and prizes.

At the beginning of February, Tax authorities published a list with at least 250,000 people who did not comply with their tax obligations in 2023, including those who would have traded cryptocurrencies and did not make the corresponding declarations.

On the other hand, at the end of last year, President Luiz Inácio Lula da Silva signed a bill that introduces taxes for digital currency funds held abroad by Brazilian users, setting a 15% quota for such purposes. .

Regarding derivative products, recently BlackRock reported that his iShares Bitcoin Trust (IBIT), his ETB Bitcoin in cash, will begin trading on the Brazilian stock exchange. It is a product specially adapted for said market in alliance with B3, one of the main stock market operators in the country.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash, edited with Canva

WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.