Following the passage of Law 14.478/2022 regulating the cryptocurrency market, the Chairman of the Securities Commission (CVM), Joao Pedro Nascimento confirmed that it will closely monitor the exchanges in the market, primarily those involved in token issuance.
Directly, no exchange name was mentioned by him when sharing regulatory plans, last Wednesday (21).
In any case, the Central Bank of Brazil (BCB) must prudentially regulate all brokerage firms. In addition, part of the regulatory process should be in charge of the country’s CVM, which is also alert to the market.
CVM president confirms he will oversee cryptocurrency brokers issuing more tokens
O Biennial Risk-Based Supervision Plan (SBR)for the period 2023-2024, has been established by CMN resolution 3.427/06.
According to Fábio Pinto Coelho, head of the Strategy and Institutional Performance Management (DEGES) division of CVM’s Planning and Innovation Superintendence (SPL), the new plan aims to promote efficiency in the securities market.
“To this end, the technical areas of the autarchy have defined the oversight actions and objectives for dealing with the risks considered a priority in its regulatory environment, as well as the expected results of its activities, so that the CVM continues to contribute to a relevant path to the development of the capital market in Brazil.”
As for João Pedro Nascimento, president of the CVM, everything indicates that the next two years should bring new risks for investors. For example, the municipality presented the concept of thematic supervision, including offers of tokens distributed by brokers.
“For the 2023-2024 biennium, the CVM included new priority risks related to securities distribution activities. Three thematic oversights were adopted for risks considered to be emerging: digital influencers, governance in ESG/ASG securities market actions and offers non- registered security tokens distributed by cryptocurrency exchanges.”
Digital influencers in the crosshairs of authorities
The CVM also shared an image highlighting how the thematic oversight will work, using the bitcoin image in the content to represent the cryptocurrency market.
In addition, the highlight goes to the new research into “Digital influencersResponsible for recommending asset purchases and sales, many promote scams and pyramids to their followers. If caught now, they may have to respond in administrative proceedings.
Another area to appear on the CVM radar is that of ESG/ASG Equity Governance in the Securities Market🇧🇷
However, in order to cope with the new work, the chairman of the CVM emphasized the need for a public tender as a fundamental factor in maintaining the efficiency of the planned oversight work for the biennium.
“Since 2010, the CVM has not had a public tender and there has been a continuous loss of staff, mainly due to retirements. This shortfall has been partly compensated by the redeployment of the workforce through the transfer of professionals from other public institutions. , the public tender is being increasingly essential and fundamental to the development of work in our autarchy.”
In any case, the material makes it clear that the cryptocurrency market will be overseen by both the CVM and the BCB.
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.
