The Central Bank of Brazil has announced that it will launch a public consultation on crypto regulations by the end of the year. The bank said it aims to collect suggestions and feedback from experts and the public before implementing the final rules. The companies already operating in the Brazilian crypto market will have a minimum of six months to comply with the upcoming regulations. - Measures in the legislation will aim to reduce potential risks from decentralized systems and protect investors from exposure to digital assets without the necessary disclosure.
- The move came a month after President Luiz Inácio Lula da Silva signed new legislation into law, specifying jurisdictions on crypto to provide clarity within the Brazilian digital asset industry.
- The designation authorized the central bank to determine rules to be followed by virtual asset service providers, including the licensing requirements to operate in the country.
- The country's securities commission, the Comissão de Valores Mobiliários (CVM), was also authorized to keep virtual assets qualified as securities under control.
Brazil is considered the crypto hub of South America as one of the largest markets in the region. - The country's central bank is also currently piloting a central bank digital currency (CBDC), or the digital real, with 14 project participants, including several giant firms such as Visa and Microsoft.
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