30 Jun Cryptocurrency Regulation in Brazil: A Step Towards the Future
Article by Rodrigo Trasferetti, CLO of Pepita Utility Token
The universe of cryptocurrencies has been gaining increasing relevance in the world economy, and Brazil has just taken a significant step towards the future. Recently, the Brazilian government published a decree placing the Central Bank (BC) as the regulator of the cryptocurrency sector (Valor Econômico).
Until now, Brazilian legislation was not clear about who should supervise and regulate the use of these digital assets, leading to an environment of uncertainties for both consumers and companies. With this new decree, the BC becomes the main responsible for establishing the rules and ensuring compliance with the norms for the operation of cryptocurrencies in the country.
The new regulation represents a significant advance in the Brazilian government’s view on cryptocurrencies. This more assertive and regulated stance allows greater security for transactions, favors innovation, and the creation of new businesses in the area.
According to the text of the decree (Planalto), the BC will act in the “regulation, supervision, and inspection of payment arrangements and the initiators of payment arrangements that are part of the Brazilian Payments System (SPB), for purposes of guaranteeing monetary and financial stability and safe and efficient operation of the system”. This standardization of the SPB is a fundamental step to more effectively integrate cryptocurrencies into the traditional financial system.
One of the main beneficiaries of the new regulation is the mining market, which has been looking at blockchain technology as a way to make its processes more transparent and secure. Proof of this is the initiative of Pepita Utility Token (https://pepita.global), which proposes to unite the traditional and decentralized market, offering traceability for gold extraction, ores, and commodities processes.
The Securities and Exchange Commission (CVM) also released a note about the decree, reinforcing that the regulation of virtual assets contributes to the safety and development of the Brazilian financial market (CVM).
In summary, the regulation of the cryptocurrency sector by the Brazilian government represents an important milestone in the scenario of cryptocurrencies in the country. It is a fundamental stage for the maturation of this market, making it safer, transparent, and, above all, reliable for all participants.
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