The Central Bank discusses the regulation of cryptocurrencies

The lawyer clarifies the phases and objectives of the public consultation launched by the Central Bank on the regulation of cryptoassets.

The Central Bank (CB) analyzes the regulation of the virtual asset services market in phases, with the first phase already underway progress. The first public consultation took place in December 2023, which sought to bring together the most diverse aspects of governance, such as the prevention of money laundering, risk management and how best to monitor custody on the blockchain.

This collection of opinions aimed to create a solid basis for the development of final standards, involving the active participation of society and the market.

The second public consultation is scheduled for next semester and is expected to address issues related to operational standards and authorization processes for virtual asset service providers operating in the Brazil.

The criminal lawyer Armando S. Mesquita Neto, partner of the A. Mesquita Advogados firm, clarifies that the competence to regulate crypto-assets was attributed to the BC with decree 11,563 of 2023, preserving the responsibilities of other bodies, such as the Securities and Exchange Commission ( CVM) and the Federal Revenue Service (RFB), all with the same goal of protecting investors by demanding transparency on the benefits and risks associated with cryptoassets.

Mesquita further explains that the second public consultation – – in accordance with the Law 14.478/2022 – -, will have to address the issue of virtual asset service providers. Virtual Asset Service Providers (VASPs), which operate in the offering, intermediation and custody of cryptoassets, will only be able to operate in Brazil with the authorization of the BC. And, for the year 2024, the BC has prioritized:

· Development of a second public consultation in the second semester.

· Internal planning for stablecoin regulation.

· Improved regulatory framework for VASPs, including foreign exchange market and prudential requirements.

“The regulation aims to preserve the stability of the national financial system, with particular attention to the prevention of money laundering, combating terrorist financing and monitoring suspicious activities,” says the expert.

The lawyer concludes that the BC, with the support of regulatory bodies, is committed to creating effective and transparent regulation for cryptoassets, protecting investors and strengthening the Brazilian financial system.

About Armando S. Mesquita Neto

He is a lawyer with a master’s degree in criminal law, human rights and public security from the University of Salamanca-Spain, a specialist in criminal law, economics and compliance from the Faculty of Law of the University of Coimbra-Portugal and a post-graduate diploma degree in Economic Criminal Law from the Faculty of Law of the University of Coimbra, Brazilian Institute of Criminal Sciences (IBCCRIM) and Institute of European Economic Criminal Law (IDPEE).

To find out more just visit:

https://www.instagram.com/amesquitaadvogados/

https://www.linkedin.com/in/armando-s-mesquita-neto-717576155/

Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.