Brazil has become one of the first countries in the world to adopt a comprehensive law regulating the cryptocurrency and virtual assets market. The law was published in the official journal of the government on June 14 and will come into force in six days.
According to the law, the central bank of Brazil (BCB) will act as the main regulator of the cryptocurrency market and will establish rules and requirements for companies engaged in providing services with virtual assets. Companies that want to work with cryptocurrencies must obtain permission from the BCB and comply with anti-money laundering and terrorist financing regulations.
The law also defines the concept of a virtual asset as “a digital expression of value that can be transferred, stored or traded electronically.” Virtual assets are not recognized as legal tender or a security, but can be used to pay for goods and services or for investments.
The legislative initiative was developed by the Brazilian Ministry of Economy with the participation of representatives of the crypto industry and the public. The purpose of the law is to create a safe and transparent environment for the development of the cryptocurrency sector in the country, as well as to protect the rights and interests of consumers and investors.
Brazil is one of the most active countries in Latin America in the use and development of cryptocurrencies. According to Statista, in 2021, more than 22% of Brazilians said they own cryptocurrencies or use them for payments. Brazil also has several large crypto exchanges, such as Mercado Bitcoin, Bitso and Foxbit, which serve millions of customers and provide high trading volume.
However, the regulation of cryptocurrencies in Brazil is still not defined and is not uniform. Different authorities have different approaches and positions in relation to virtual assets. For example, the Central Bank of Brazil believes that cryptocurrencies are not real currencies and are not subject to its supervision. The Brazilian Securities Commission considers some cryptocurrencies as securities and requires crypto funds to register and comply with information disclosure rules. The National Council for Financial Policy has established a tax on profits from transactions with cryptocurrencies in the amount of 15%.
