The authorities in Brazil are presently focused on releasing an exclusive order to modify a few of the rules existing in the Bitcoin Law that was authorized back in 2022’s November by Jair Bolsonaro (the former president of the country). This move is witnessed in association with the recent advancements made by Lula da Silva (the new president of Brazil) in the recent days.
Authorities in Brazil Focus on Crypto Regulation
The latest president of the country has barely spent a month after taking the oath of his presidency. In the respective short time, he has proven his power by inking several measures and orders to modify what has been established by the former government.
The team of Lula is presently operating on the latest proposals dealing with the regulation of the crypto space as well as clarifying the present laws governing crypto assets.
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As per the reports spread by the local media, the authorities have established a comprehensive group for administering the regulation. This takes into account Marcos Pinto (the secretary of economic reforms) and Gabriel Galipolo (the Ministry of Finance’s executive secretary).
Apart from that, the regulation gets technical support from the Brazilian Securities and Exchange Commission (CVM) and the Central Bank (BC).
The first expectation was that the directive would be delivered at the start of this month to Casas Civil (the Presidency of the Republic).
Nonetheless, a postponement was witnessed subsequently. In the meantime, the crypto market is desperate to have a decree, possibly with additional attention given to the organization that will play the role of the regulatory agency for Bitcoin’s ecosystem.
Formerly, it was reported that the central bank of the country would regulate the crypto world. Nevertheless, the recent attacks of Lula against the financial organization have raised some cautions. In the previous month, the Brazilian president objected if the central bank’s autonomy was beneficial to the interest of the nation.
Though he later appeared to withdraw from it, he implied to review the organization’s autonomy to carry out decisions from the year 2021. The latest regulations’ chief attention would be focused on creating exclusive rules dealing with diverse aspects of the crypto market. Several expectations point out that the latest order would elucidate the laws for the regulation of the crypto market across the Brazilian jurisdiction.
Policymakers Argue on Separation of Client Funds and the Assets of the Entities Offering Crypto Services
A proposed law concerning the requirements for crypto brokers and exchange for the segregation of their assets has been discussed at a large scale. The policymakers have been arguing on this measure, and it suggests that the brokers of the crypto assets should keep their assets from the deposits of the consumers.
The people supporting the respective regulation are of the view that it will assist in preventing the assets of the clients from being combined with the function of the crypto exchanges as well as the rest of the service providers.
The notorious crash of the crypto exchange platform FTX is considered to be a prominent incident where consumers were unable to extract their assets because of the operations carried out by the exchange firm. The Brazilian Bitcoin Law proposal was, for the first time, authorized when the Senate approved the bill. Nonetheless, it is anticipated to be a significant part of the recently proposed Bitcoin order.