The Central Bank of Brazil is preparing to roll out new regulations for the cryptocurrency industry by the end of 2024, aiming to strengthen oversight and ensure greater protection for investors.
The Central Bank of Brazil (BC) has committed to finalizing its crypto regulations by the end of 2024, aiming to establish a clear and secure framework for virtual asset service providers (VASPs). The new rules are set to enhance transparency and investor protection, addressing concerns over scams and fraud within the crypto space. This regulatory push is part of the BC’s broader strategy to ensure a safe environment for crypto transactions and maintain oversight in collaboration with the Securities and Exchange Commission (CVM) and the Special Secretariat of the Federal Revenue of Brazil (RFB).
The forthcoming regulations, guided by Decree 11,563 of 2023, will require VASPs to obtain authorization from the BC to operate in Brazil. This includes activities related to offering, intermediating, and custody of crypto assets. Nagel Lisanias Paulino from the BC Financial System Regulation Department emphasized that the new rules aim to set minimum operating standards and improve customer interactions. Law 14,478 of 2022 mandates this authorization process, aligning Brazil with international standards to better protect investors.
