The regularization of the cryptocurrency market in Brazil is closer to being a reality. After intermediation by ABCripto (Brazilian Cryptoeconomics Association) and other entities, the Chamber of Deputies approved the bill 4401/21 this tuesday, 29 November.
Now, the PL awaits the sanction of the Presidency of the Republic to enter into force. Nonetheless, approval of the project already guarantees greater security not only for service providers, but, mainly for investors.
Among the main proposals of the new law are the segregation of cryptos, new regulatory standards for brokers and providers, the definition of legal security rules for investors and also measures to prevent fraud and money laundering.
Counterattack organs
For that, one or more supervisory bodies will be in charge of regularizing and supervising crypto asset services. At first, Supervision will be the responsibility of Banco do Brasil, which will work with service providers, but, also, in investor protection.
At the moment, Brazil has been the target of many frauds in this segment, recording scams with digital assets, but also financial pyramids. Recently, Francisley Valdério da Silva, the “Sheik of Cryptocurrencies” was arrested after embezzling R$ 4 billions of its victims.
Stricter legislation
New standards will also be stipulated for market service providers so that they comply with local legislation. A good example is that now, the PL will require crypto exchanges to operate after meeting some minimum requirements.
This is a guarantee for investors and will make requests such as corporate type and net worth to release the operation. “If the investor has a problem, he will know who he will notify or who he will fight against at the administrative or legal level”, explains Isaac Costa, professor at Ibmec and Insper institutions.
Nonetheless, the changes also tend to protect brokers against specific market risks. Like this, representatives of the crypto economy will be able to better protect themselves against bankruptcies, blocking withdrawals and suspicious users, like hackers.
Deadline for changes
The changes provided for by the draft regulations must come into force within six months after the date of enactment of the law. Although, This period may be extended in accordance with public hearings that brokers may request to discuss some rules of the new legislation.
The PL was authored by deputy Áureo Ribeiro and had been sitting in the Chamber of Deputies for months. After representatives of the crypto market met with the bench, the vote went to the plenary, in Brasilia. Now, The promise is that the law will be sanctioned as soon as possible.
