central bank unveiled a multi-phase plan to regulate crypto and virtual asset service providers on Monday. It aims to finalize the regulatory proposals by the end of this year.
According to the bank, these regulations will set forth guidelines that will confirm and impose more openness regarding the possible advantages and disadvantages of these investments. It claimed that in order to effectively control the nation’s cryptocurrency service market, a phased approach was chosen.
“From this point on, the contributions will be used and the regulatory proposals will be finalized at the end of 2024,” the bank added.
The central bank’s latest decision pushes back the finalization of the process, according to Reuters. It follows a 2022 law that gave the bank the authority to develop these regulations.
Otavio Damaso, the director of regulation at the central bank, predicted that the crypto regulations would be finished by June 2024 during a congressional hearing last year.
In December 2023, the bank held a public consultation on the subject, which ended in January. It then declared that a new public consultation would take place in the latter part of this year.
The primary goal of the first consultation, the central bank informed Reuters, was to get public input on the proposed regulations. It also addressed topics like asset segregation for virtual asset service providers that are not covered by the 2022 law.
It addressed this by explaining that “reasonable dedication from the teams involved” was needed for the first public consultation.
Stablecoin regulation is another initiative the bank is pursuing, especially for those that are utilized for foreign exchange and payments.
Brazil Blocks Crypto Donations in Elections
Brazilian authorities last week firmly established a ban on cryptocurrency contributions to political parties and candidates in an effort to crack down on the use of cryptocurrencies in campaign finance.
In support of its prohibition, the electoral court emphasized the importance of campaign finance transparency and traceability. It declared that elections would be shielded “from irregular or illicit practices.”