Open since November 8, 2024, the Public consultation by the Central Bank of Brazil on the regulation of cryptocurrency brokers has not attracted much public attention.
With just 9 suggestions submitted until November 17According to Livecoins on the BCB website, the regulation of Public consultation 109/2024which runs until 02/07/2025. has few valid ideas. This is because some suggestions just call for non-regulation of cryptocurrencies.
The other open question, number 110/2024 also available in the same period, received just a suggestion.
“109/2024: Publishes public consultation on the proposed resolution of the Central Bank of Brazil regulating the establishment and operation of virtual asset service providers and providing for the provision of virtual asset services by other institutions authorized for that purpose authorized by the Central Bank of Brazil and a proposal for a resolution of the National Monetary Council establishing the rules on the charging of fees for the provision of services by financial institutions and other institutions authorized by the Central Bank of Brazil operate, change and consolidate.”
The regulation of cryptocurrency brokers in Brazil is divided into three categories
For a lawyer specialized in payments, the new regulatory proposal divides the so-called VASPs into three categories. And according to the assessment of the specialist in payment methods at Barcellos Tucunduva Advogados – BTLAW, Thiago Amaral, this is the most important innovation of the new consultation, he said in a note to Livecoins.
Launched by Central Bank of BrazilPublic consultations 109 and 110 address the establishment and operation of virtual asset service providers (VASPs) and propose the break-up of companies categories: intermediaries, custodians and brokers of virtual assets.
“According to the regulator, each modality entails a different risk for the market. Therefore, specific rules were established for the constitutional process and the operation of each.“explains Amaral.
According to the notice, companies must observe minimum limits on share capital and paid-up equity, in amounts from R$1 million to R$3 million, depending on the modality.
New requirements by law
For situations of To expand (blocking crypto assets as collateral for transactions) or ‘Margin Account’ (obtaining credit using crypto assets as collateral), VASPs must also add the value of R$2 million to their minimum capital and paid-up equity.
“It is an interesting solution for dealing with some specific operations in the virtual asset market that entail relevant risks for customers and investors.“, says the BTLAW specialist.
The cryptocurrency market in Brazil was regulated by Law No. 14,478/22, which brought with it important definitions regarding virtual assets and VASPs. However, there was a lack of regulation on how these companies could offer their services to the public, and the minimum requirements they had to meet to apply for operating licenses from the Central Bank.
The new Public Consultations are therefore a step in this direction. Market contributions can be sent until February 7, 2025.
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.
