The Brazilian SEC is trying to change its approach to the regulation of crypto coins. In fact, various nations and their regulating agencies are trying to rephrase their policies about crypto coins. This tendency might be seen as an attempt to keep up with the evolving crypto market. Therefore, if the Brazilian SEC really changes its approach toward crypto regulation, that would be an interesting thing to watch.
In Brazil, there are many lawmakers, who have been working on crypto regulation since 2015. However, only the first version of a bill got the Senate’s in April 2022. If you wish to know more about the Brazilian SEC and its view on crypto regulation, then this article is the perfect stop for you. Keep reading the article to know more about the topic.
The New Bill
The local media has pointed out a specific issue in the new bill put forward by the Brazilian SEC. The bill seems not to consider tokens as securities or digital assets. As such, the tokens will not come under the regulation of the SEC. On the contrary, the Brazilian SEC suggests the formation of a new board. It also focuses on increasing the relevance of the crypto sector in the financial services of Brazil.
As we already know, Brazilian lawmakers have been working on crypto regulation since 2005. In April 2022, the Senate approved the first version of a bill. The Brazilian president will sign it into law, once Congress sends the bill after its final revisions.
The bill defines a virtual asset as something that represents value digitally. In addition, it can also be used for payment, or investment, and transferred or traded electronically. The bill also provides the best practices for KYC. However, the bill states that NFTs are not securities. This very fact has put up a question mark against the future of other crypto coins.
However, speaking to a local newspaper one SEC representative stated that there are scopes for improvement in the bill. The definition of virtual assets, requirements of prior authorization and “the approval of business combinations in redundant roles with the Cade “ are some areas that might be improved.
According to a section of the legislators, the president might provide a possible resolution. According to them, they should send the bill to the president. Then the president would apply a decree. By this, he would determine the roles of the Brazilian SEC and the Brazilian Central Bank to authorise initial coin offerings and regulate the market. Yet another section of the legislators is in the favour of introducing a new bill.
The legislators submitted another bill about crypto coins to Congress. If this bill gets approved, then that would provide the right to use crypto coins for payments. It would also protect the private keys from being taken by the courts. Now it remains entirely on Congress to decide on this matter.