Brazilian President Signs Off on National Crypto Rules
TL;DR Brazil recently passed a law that will regulate cryptocurrency companies in the country. The law paves the way for a new federal agency to regulate digital assets firms, and establishes a “virtual service provider” license. Similar laws are being considered in other jurisdictions after FTX’s implosion last month.
The bill, signed into law on Thursday, will take effect in 180 days, by which time crypto companies in the region must adapt to the new rules.
through Parliament in late November, the bill would make it possible for crypto firms to register in the country and establish physical offices. These include firms that offer crypto financing services or those that allow for the conversion of crypto assets into national currencies.
It also paves the way for a new federal agency that will regulate digital asset firms and establishes a “virtual service provider” license.
Under the law, digital assets deemed to be securities will be overseen by the Brazilian Securities and Exchange Commission, while others will be regulated by an entity yet to be established.
Similar laws are being fast-tracked and pushed in several jurisdictions after FTX’s implosion last month. Indonesia is
grappling
with a similar bill that would move regulation of the industry to the Financial Services Authority, and away from the Commodity Futures Trading Regulatory Agency.