Nftnews Today Brazilian SEC seeks to change its role in cryptocurrency regulation

The Brazilian Securities and Change Fee is reportedly pursuing modifications within the nation’s authorized framework with regard to its regulation of cryptocurrencies. 

In accordance with native media, one main concern is that the invoice in query doesn’t seem to think about tokens as digital belongings or securities — they usually due to this fact would not fall underneath SEC regulation. The up to date place of the nation’s SEC follows the appointment of a brand new board and the elevated relevance of the crypto sector within the nation’s monetary providers.

Brazilian lawmakers have been engaged on laws for cryptocurrencies since 2015, however the Senate solely approved the ultimate model of a invoice in April 2022. As soon as Brazil’s Congress finishes its last revisions, the invoice will likely be despatched to the nation’s president, who will signal it into regulation.

As described within the authorised textual content, a digital asset is a digital illustration of worth that may be traded or transferred electronically, and used for fee or funding functions. As well as, it outlines the very best practices for Know Your Buyer (KYC) procedures and units up strategies to forestall cash laundering. Per the invoice, nonfungible tokens (NFTs) are additionally not thought-about securities, whereas most different tokens are in the course of discussions about whether or not they’re.

In a be aware to a neighborhood newspaper, a consultant from Brazil’s SEC mentioned:

“The talked about invoice wants particular enhancements, together with the definition of digital belongings, prior authorization necessities, and the approval of enterprise mixtures in redundant roles with the Cade [Brazilian Federal Trade Commission].”

Legislators mentioned they consider {that a} doable decision may very well be to ship the invoice to the president to find out by way of decree what roles the Brazilian Central Financial institution and the SEC ought to play in authorizing preliminary coin choices and regulating the market. Some legislators take into account this measure a authorized uncertainty, arguing that a wholly new invoice ought to be launched. In June, one other invoice associated to cryptocurrencies was submitted to the Brazilian Congress. If authorised, the proposal would grant the proper to make use of cryptocurrency as a method of fee, whereas defending non-public keys from being taken by the courts. A draft of the regulation is at present ready to be reviewed by the legislators’ committee.