Five Brazilian associations, from different sectors, came together to submit a joint letter and pressure President Lula to disclose the rules of Brazil’s cryptocurrency law.
Scheduled to come into force on June 19, 2023, the Cryptocurrency Framework is represented by Law No. 14,478/2022. After years of progress in the National Congress, the law passed late last year is the first to formalize the Brazilian crypto market.
The letter was signed by the Brazilian Internet Association (Abranet), the Brazilian Association of Cryptoeconomics (ABCripto), the Brazilian Association of Fintechs (ABFintechs), the Digital Innovation Movement (MID) and Zetta, an association founded by technology companies operating in the financial and payment sector.
Associations are pressuring Lula to release the rules of the cryptocurrency law as soon as possible
The letter, addressed to Minister Rui Costa, Prime Minister of the Civil House, and Fernando
Haddad, Brazil’s finance minister, was released in the last days of May 2023.
With the document, the associations ask for speed, as it will be known which government agency will supervise the cryptocurrency market.
In addition, the document reiterates the importance of regulation to provide legal certainty for companies to offer products and services in Brazil at a time of market recovery.
The associations point out that companies with the first rules of the game for the segment will have legal certainty to offer products and services in Brazil.
In doing so, they ultimately generate more jobs and income for thousands of employees, in addition to promoting new technologies and solutions through the use of blockchain, in a time of market recovery.
Letter reminds that the law provides for punishments for crimes involving the crypto market
Law No. 14,478/2022 is the first passed by the National Congress regarding the cryptocurrency market, which can provide more security for companies to operate in the country, in addition to increased oversight of all brokers.
In addition, it is the first law to consider punishing those who commit crimes involving cryptocurrencies in Brazil, including financial pyramid scams. The law should punish those who fail to take responsibility and adhere to established standards, with prison terms and fines.
As of June 1, 2023, Lula’s government had not yet published the rules governing the market. With the letter, the five associations expect speed in announcing the rules, so that the market is already prepared for the changes to come.
In the past, the Central Bank of Brazil has made it clear that it needs to take on the role of cryptocurrency brokers and platforms. However, the CVM must support regulation by supervising companies that issue securities.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
