Deputy Lafayette de Andrada (Republicanos-MG) presented a work plan of the Special Commission on Digital Justice to adapt current legislation to the digital environment. The committee will cover topics such as tokenization, cryptocurrencies, metaverse, decentralized governance, artificial intelligence and data protection in the context of social networks, among others.
The topic is broad and comprehensive, so the live coins spoke to two lawyers specializing in cryptocurrencies, who analyzed the work plan of the Special Commission on Digital Law in relation to crypto assets only.
What can you expect from the Digital Law Commission on cryptocurrencies?
According to lawyers, the largest number of transactions involving cryptocurrencies involve legitimate companies. However, it is unreasonable to rule out the possibility that cryptocurrencies can also be used to commit crimes. And for that, they are important public agents trained to deal with digital crimes.
The use of crypto-assets in illicit activities (for example: money laundering, financial pyramid, drug trafficking), requires criminal justice professionals who have knowledge for investigative purposes.
For this reason, specialist lawyers say it seems reasonable to develop legislation and the resulting budget forecast for training officials on topics related to the monitoring and tracing of cryptocurrencies in the blockchain context, without prejudice to the use of open sources for cross-referencing data.
The use of technology is fundamental in the research and also the recovery of digital financial assets. Currently, the resources for analyzing blockchain transactions and cross-referencing are in the hands of private companies.
Therefore, the Recommendation includes the development of guidelines that not only expand training, but also encourage the design and improvement of concrete solutions in the context of the fight against cybercrime, which can significantly contribute to a stronger societal response to the challenges of cybercrime .
Even without a government stimulus and in the midst of a legal loophole, Goiás State Civil Police Deputy, Dr. Vytautas Fabiano Silva Zumas, his in-depth knowledge of technology and his expertise in this field.
He implemented the establishment of the Cryptoasset Operations Center, integrated into the General Coordination for Combating Organized Crime at SEOPI/Ministry of Justice and Public Security. This initiative gave birth to the innovative BlockSherlock platform, which brings together a range of services for the purpose of research and support for society at large. In addition, the platform offers exclusive tools in a secure and reserved manner that are only intended for civil servants.
Legislation establishing the viability of financial investments to encourage the creation of research platforms could give rise to other initiatives similar to BlockSherlock.
Lawyers remind that Marco das Cryptocurrencies are already setting standards
It is crucial to remember that the Marco Legal das Cryptocurrencies Law No. 14478/2022 is already trying to establish standards for the operation of virtual assets in the national context. However, the lawyers who spoke to Livecoins understand that the legislation turned out to be conservative and failed to address the numerous loopholes that are still without legal clarification.
Undoubtedly, Decree No. 11.563/2023 regulating the recently passed cryptocurrency law has finally formalized the long-awaited grant from the Central Bank of Brazil (BCB) for the regulation of the supply of services related to virtual assets, not just the authorization , but also the inspection of the agents involved in this service.
In this context, it seems to be a prerogative of the Central Bank to compile a list of trustworthy companies that can operate in the cryptocurrency market, a move presented as a preventive measure against financial fraud. This would allow individuals, intermediaries and financial institutions to conduct checks to validate a company’s legitimacy before getting involved. Those who choose to associate with companies that are not on the list are willing to take risks themselves, as the Brazilian state will make information relevant to sound and trustworthy companies transparently accessible through a public platform.
Cryptocurrency influencers promote shady products
However, there are more complex issues for which adequate legislation is lacking. One point of discussion that still lacks a consensual legal solution is the possible responsibility of digital influencers in promoting questionable products that later turn out to be fraudulent.
There is no denying that the reach of influencers is huge and it is imperative that a regulatory framework is put in place to delineate their responsibilities in making financial services public. After all, legal mechanisms exist to assess a company’s integrity, and from the moment an influencer chooses to endorse a particular service, the question arises of the scope of possible administrative, civil and criminal sanctions.
It is undoubtedly a broad and complex subject, requiring extensive and democratic discussions in order to generate constitutional debates and, consequently, to promote the elaboration of appropriate regulations that guarantee the fundamental guarantees of all concerned.
The legislature should make fairer laws for the cryptocurrency market, experts insist
Moreover, within the framework of the legislative landscape, it is imperative to establish a firm foundation for both legislation and cooperation between financial institutions. The underlying goal is to give individual digital interactions legal soundness. Those operating in the cryptocurrency market are aware of the recurrence of unjustified bank account closures by players in this market, which in turn calls for adequate regulation to ensure a more predictable and fair environment..
In addition, uncertainty about the legality of using cryptocurrencies on national and international platforms has led to concerns among investors, especially regarding the possibility of currency evasion. The implementation of specific standards in this context would significantly increase legal certainty.
Still in the criminal sphere, in the case of an advanced crime, money laundering is something developed with special skills. For money laundering to take place, that illegal money has to come to the physical or online marketplace and prove legal income. That is, the individual colors the origin. Today we see the formation of shell companies, which have employees, such employees receive the salary and ”profits” are reinvested in criminal activities, creating a cycle of placement, concealment and integration.
Therefore, the role of the Central Bank and the Real Estate Commission is important to prevent and combat criminal activity, with the aim of creating a safe environment for individuals and brokers who want to operate in the Brazilian market.
The Special Commission for Digital Law, society and the citizen themselves have and will, according to the lawyers, need technical support from an accountant specialized in the financial market, a lawyer specialized in Digital Law, cryptocurrencies and a criminal lawyer with knowledge of digital resources. as the theme is the growing legislative debates.
spoke to the live coins lawyer Raphael Souza, specialist in cryptocurrencies.
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.
