Brazil Central Bank Extends Timeline for Crypto Regulation
Brazil's central bank announced on Monday that it will implement a phased approach to regulating crypto-assets and virtual asset service providers, with regulatory proposals anticipated by the end of this year.
This decision postpones the completion of the regulatory process that was initially set in motion by a 2022 law.
During a congressional hearing last year, Otavio Damaso, the bank’s director of regulation, had forecasted that the regulation would be finalized by June 2024.
However, after conducting a public consultation from December 2023 to January 2024, the central bank has now planned a second consultation for the latter half of this year.
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The central bank explained to Reuters that the first consultation was aimed at collecting public feedback and addressing issues not covered by the 2022 law, such as the asset segregation of virtual asset service providers.
This process required significant effort from the regulatory teams due to the diverse activities and structures within the virtual assets sector.
The upcoming second consultation will focus on the regulatory texts, utilizing the initial feedback to establish a comprehensive regulatory framework with broad public support, according to the central bank.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
