This Monday, December 11, the Central Bank (BACEN) held a live broadcast to clarify doubts about the future regulation of the cryptoactive market.
According to Decree 11,563, which regulates Law No. 14,478 (Legal Framework for Cryptocurrencies), BACEN was designated as the supervisory authority for services related to virtual assets.
Antônio Marcos Guimarães, consultant at BACEN’s Financial System Regulation Department, explained that regulation aims to address market failures that are not resolved by self-regulation.
To illustrate, he cited as examples cases of financial pyramids, mismanagement of reserves in stablecoins, risks of connection with the traditional financial system, in addition to episodes where the Terra Luna and the FTX crash. According to him, these failures reinforce the need for government intervention.
The advisor believes that regulation will encourage investors to prefer the single market. With clear rules and strengthened security, national brokers become more attractive than unregulated brokers.
BACEN also wants to regulate DeFi
Regarding the regulation of DeFi (decentralized finance), Antônio Guimarães stated that even with regulatory challenges, this sector is subject to the rules of Law 14478. Automated services or not, when offered to residents of the country, the Follow BACEN guidelines.
He also emphasized that in international practice there is no pure DeFi, as there is always an entity that controls the code or governance, such as DAOs (Decentralized Autonomous Organizations). So there will always be an entity, physical or legal, that is responsible and integrates DeFi at the same regulatory level as centralized exchanges.
Foreign currency evasion and crypto asset evasion
Commenting on the use of cryptoactive substances in international money transfers, the BACEN representative announced the implementation of a specific regulatory framework for these operations.
This new regulatory system will be structured in such a way that it is in line with both the guidelines of Law 14478 and the current regulations of the Brazilian foreign exchange market. The aim is to ensure that international money transfers carried out via decentralized technologies comply with all national legislation.
During the question-and-answer session, when asked about the taxation or reporting of crypto assets, the advisor emphasized that these issues are the responsibility of the Federal Revenue Service and do not fall within the scope of regulation by the Central Bank.
BACEN public consultation
The broadcast also confirmed that BACEN will hold two public consultations to regulate the cryptoactive sector.
The first, later this month, will seek suggestions on governance, risk management and custody. The second, scheduled for next year, will present detailed minutes, including VASP operations and authorization and licensing procedures.
The recent broadcast provided the Central Bank with an opportunity to explain its intentions regarding the regulation of the cryptoactive market. As public consultations take place, our focus will be on closely monitoring each stage of the process until regulations are in place.
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.
