Brazil’s SEC wants broader oversight over the crypto market

Join our Telegram channel to stay updated on coverage of the latest news

Brazil’s Securities and Exchange Commission plans to introduce changes to the country’s cryptocurrency regulatory framework. The changes proposed by the SEC come after the appointment of a new board and the increase in crypto assets in the country.

The Brazilian SEC plans to change the regulatory framework for cryptocurrencies

A local media report said some of the concerns raised by the regulatory body are that the current bill focusing on cryptocurrency regulations has failed to recognize tokens as securities or digital assets. As such, these assets were outside the scope of the SEC.

Therefore, the Brazilian SEC wants to change the legal framework for cryptocurrency regulations in the country to ensure any regulatory loopholes are covered. On the other hand, the Brazilian legislatures also worked on creating regulations for the crypto space.

After years of considering cryptocurrency regulations, the Brazilian Senate passed the final version of a bill in April this year. After the final changes on this bill are completed, it will be sent to the president to sign into law.

Buy cryptocurrencies now

Your capital is at risk.

Punt Crypto casino banner

The invoice describes a virtual good as a digital asset with value, which can be exchanged and transferred electronically. The bill also mentions other cryptocurrency regulatory provisions such as Know-Your-Customer (KYC) and anti-money laundering laws. The bill classifies non-fungible tokens (NFTs) as non-securities. However, the classification of most tokens is still under discussion.

According to a local media, the Brazilian SEC, the bill in question falls short in several sectors. The SEC wants the bill to be improved to clearly define virtual assets. The SEC also wants “approval of business combinations in redundant roles with the Cade.”

Conflict over the approval of a new bill

Lawmakers said the best course of action would be to send the bill to the president, which would determine the role of the Brazilian Central Bank and the SEC in approving the initial coin offerings and overseeing the cryptocurrency market.

On the other hand, some lawmakers have argued that this could lead to legal uncertainty, urging the introduction of a new bill to consider the SEC’s proposals.

The bill isn’t the only one that went to the Brazilian Congress. Another cryptocurrency bill was also presented to Congress in June. The bill proposes to approve the use of cryptocurrencies for payments. It also plans to protect users’ private keys from judicial seizures.

Read more:

Join our Telegram channel to stay updated on coverage of the latest news

Leave a Comment