Crypto regulation reaches Brazil, as CVM CEO hints at…
- As per a Brazilian regulator, the country is looking to monitor the crypto sector in the coming days.
- The chief also asserted that his goal was to help the crypto space develop while avoiding strangulation.
The chief of the Brazilian financial markets regulator says that the body will issue a decree in the coming days that will allow government-appointed bodies to better monitor the crypto sector.
According to a 2 March news report, Joo Pedro Nascimento, President of the Securities and Exchange Commission (also known as the CVM in Brazil), stated that “cryptoeconomics” would coexist with the traditional economy. He also mentioned that the decree will most likely give the CVM the authority to determine which tokens are securities.
All crypto assets that meet the definition of security are expected to be regulated by the CVM. The central bank will be the regulatory body to take care of tokens that are not classified as securities.
According to the CVM CEO, crypto regulation has been well received by the industry thus far. He also mentioned that the CVM is working on an Open Capital Market decentralized finance (DeFi) project. The CVM was collaborating with the central bank on the project.
Nascimento said that he expects the Open Capital Market to launch sometime this year, saying:
“We are going to bring decentralized finance to the capital market. It will start with the transfer of custody of funds.”
Aim to build crypto industry-friendly regulations
Nascimento stated last year that regulations initiated by the Brazilian regulator would not impede the development of the domestic crypto market.
The CMV chief also asserted that his goal was to help the crypto space develop while avoiding rules that would strangle the sector.
The Central Bank claimed last year that the body was looking to tighten crypto regulations as well. Furthermore, it stated that its central bank digital currency (CBDC) project, the digital real, would aid in the development of domestic businesses.
While other countries focused on retail-based CBDC models, the bank claimed that the digital real was being created to assist small businesses to expand in Brazil more quickly.