The Executive Branch of Brazil designated the Central Bank and the country's Securities Commission as those responsible for supervising the cryptocurrency market, according to a decree published on Wednesday.
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According to the decree, the Securities Commission will exercise control over assets considered securities, while the Central Bank will determine the regulations that exchanges must comply with, such as license requirements to operate, InfoMoney reported.
In December 2022, former Brazilian President Jair Bolsonaro approved a bill on cryptocurrency regulation which, in turn, was also approved by the Chamber of Deputies and the Senate. The law created a “virtual service provider” license and determined a crime of fraud that includes virtual assets with a penalty of between four and six years in prison plus a fine.
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Brazil has become a regional cryptocurrency hub with a high stablecoin adoption rate and a market where major digital companies and protocols, such as Coinbase, Bitget and Metamask, have opened operations.
This article was translated by Natalia Paulovsky.