Rafael Oliveira Bitcoin : Regulation of Cryptocurrency

 

Brazil’s Acceptance and Legalization

Rafael Oliveira said that brazil has taken another step toward the acceptance and legalization of cryptocurrencies as financial vehicles. Following the approval of a new set of regulations by the Brazilian Securities Commission, established funds are now permitted to invest in cryptocurrencies, creating a new market for these organizations.

The regulations, which were adopted after President Jair Bolsonaro approved a cryptocurrency bill last week, govern cryptocurrency investments in a way that will allow these businesses to benefit from the same protections offered for conventional financial assets like stocks and bonds.

The agreed framework expressly states that cryptocurrency operations must be carried out on Brazilian Central Bank or CVM-licensed exchanges. These must be domestic investments if they are made overseas.

These entities “will have the legal capacity to supervise and inspect the operations carried out, including concerning restraining abusive market practices, as well as money laundering and financing of terrorism and proliferation of weapons of mass destruction,” in any case.

Not every asset will be permitted to join the portfolio of these funds though, as they must fit under the classifications laid forth in the recently enacted crypto law.

Regulation and Adoption Change

The fact that this new framework was released so soon after the country’s cryptocurrency law was approved demonstrates that Brazilian institutions are anxious to regularize the status of digital assets in several areas. After initially refusing to allow funds to participate in cryptocurrencies in 2018, the Brazilian Securities Commission itself made a U-turn.

Months later, the commission modified this legislation to permit funds to indirectly invest in cryptocurrencies overseas. Brazil has demonstrated a high level of consumer and business acceptance of cryptocurrencies. The Brazilian revenue office (RFB) reported that about 42,000 businesses broke previous records by buying cryptocurrencies in October.

Lastly

When over 1.5 million people bought cryptocurrency in September, the same record for individual purchases was also shattered. Due to this popularity, several conventional and digital institutions, including Nubank, Itau, and Santander, have begun or will soon offer cryptocurrency services in the nation, says Rafael Oliveira. A digital version of the real, Brazil’s fiat currency, is also in the works.