Brazil's President Luiz Inácio Lula da Silva, known to many simply as Lula, has signed legislation clarifying the roles the country's central bank and securities regulator will assume with respect to cryptocurrencies.
In a June 14 announcement, President Lula signed government decree No. 11,563, which establishes rules under a December 2022 law on a legal framework for cryptocurrencies in Brazil. The legislation authorizes the Central Bank of Brazil to regulate and supervise virtual asset service providers, and ensures that many token projects that qualify as securities will remain under the control of the Comissão de Valores Mobiliários, or CVM, the Brazilian equivalent of the United States. National Stock Market Commission.
Cointelegraph Brazil reported the CVM it aimed to create a regulatory framework better suited to the volume of cryptocurrency trading in the country, as well as in emerging markets. According to the notice, the decree will take effect on June 20 without affecting certain laws on consumer protection and financial crimes.
The decree occurred in the middle of the central bank of Brazil hopes to start a pilot project for a central bank digital currency, or CBDC, in collaboration with major payment companies, including Visa and Mastercard. The bank will test the privacy and programmability functionalities of its platform for the potential deployment of a digital real.
Related: Brazilian Cryptocurrency Exchange Mercado Bitcoin Licensed as Payment Provider: Report
With one of the largest markets in South America, Brazil is home to the Mercado Bitcoin cryptocurrency exchange and has authorized foreign payment providers, including Crypto.com and Bitso. In March, the American crypto exchange Coinbase announced that it had partnered with local businesses to offer crypto purchases for Brazilian residents.
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