The Corregedoria Geral da Justiça do Estado do Rio de Janeiro (CGJ-RJ), recognized the use of cryptocurrencies in a process of ownership exchange, acknowledging the entire process in public deed. The rules were released on Monday (19).
The move certainly expands the use cases of cryptocurrencies in the Southeast state. For example, the capital Rio de Janeiro is already considering accepting bitcoin and other cryptocurrencies for the payment of IPTU 2023.
For example, government regulation can bring cryptocurrencies to the public’s attention and provide greater legal certainty for operations involving the real estate industry.
CGJ of Rio de Janeiro recognizes the use of cryptocurrencies in real estate exchange, you see
When a property is acquired in Brazil, a public deed must be registered with a notary. The document ensures the legal validity of the transaction between the parties, whether it be purchase and sale or exchange.
In the case of an exchange of property, the parties may agree, for example, to exchange a certain asset of equal value for a house.
Common mode of trade in Brazil, now the real estate exchange is recognized when the counterparty is cryptocurrencies, in the state of Rio de Janeiro. According to the CGJ, article 363 in the Regulations of the Interior of Justice – Extrajudicial part legalizes the procedure.
The defined rules state that the holder of the cryptocurrency must declare its value, in Brazilian real, based on the quote on the day of the deed, according to the market’s own assessment.
In addition, both parties must issue a statement acknowledging the economic value of the cryptocurrencies exchanged, specifying their value for exchange in the title.
Another CGJ requirement is that the cryptocurrency involved in the exchange does not represent any rights to the ownership of the exchange itself, both at the time of the exchange and after it is completed. That is, “tokens” representing a house, for example, cannot be involved in an exchange of the same property.
To exchange with cryptocurrencies, the owner of this asset must inform the place of custody on a digital platform. The data must be included in the deed. Even if the brokerage is foreign, it is necessary to identify the company during the negotiation, although the rules do not specify the cases of cryptocurrencies held in their own wallets.
COAF must be notified of digital currency exchanges
Recently, COAF issued a statement asking cryptocurrency brokers to stop sending information about digital currency transactions.
In the case of an exchange of ownership with cryptocurrencies in Rio de Janeiro, the information must reach COAF. The measure aims to prevent money laundering and terrorist financing.
“All notarization and registration acts related to crypto asset trading must be communicated to the Financial Activities Control Council – COAF, in accordance with CNJ Regulation No. 88/2019.”
The rules applicable to properties holding cryptocurrencies were approved by the Inspector General of Justice, Judge Ricardo Rodrigues Cardozo, who was recently elected President of the Court of Justice of Rio de Janeiro.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
