Central Bank announces public consultation in November to regulate bitcoin in Brazil
The Central Bank of Brazil (BCB) announced on November 3, 2023 that it would launch a public consultation in November to regulate Bitcoin and cryptocurrencies in the country. The BCB highlighted that it will first regulate exchanges and the rules must be in force in the first half of 2024. Then, it will focus on stablecoins.
The public consultation will focus on the following topics:
🔸Definition of cryptocurrencies and virtual assets
🔸Exchange regulation
🔸Prevention of money laundering and terrorist financing
🔸Consumer protection
🔸The BCB looks forward to receiving feedback from the industry, investors and the general public. The public consultation will be open for 45 days.
Exchange regulation
The BCB proposes that cryptocurrency exchanges register with the central bank and meet a series of requirements, such as:
🔸Have a minimum capital
🔸Implement security measures to protect user funds
🔸Report suspicious transactions
🔸Prevention of money laundering and terrorist financing
The BCB proposes that cryptocurrency exchanges implement measures to prevent money laundering and terrorist financing, such as:
🔸Identify users
🔸Conduct background checks
🔸Report suspicious transactions
🔸Consumer protection
The BCB proposes that cryptocurrency exchanges protect consumers, such as:
🔸Provide clear and transparent information about cryptocurrency risks
🔸Allow users to withdraw their funds at any time
🔸The regulation of cryptocurrencies in Brazil is a controversial topic.
Some experts believe that regulation is necessary to protect investors and prevent fraud. Others believe that regulation could inhibit innovation in the cryptocurrency space.
The BCB hopes that the public consultation will help develop balanced regulation that protects investors and promotes the development of cryptocurrencies in Brazil.
