• The head of the Brazilian financial markets regulator, João Pedro Nascimento, announced that a new decree will be rolled out in the next few days to allow government-appointed bodies to better police the crypto sector.
• This decree will likely grant the CVM (Securities and Exchange Commission) the power to determine which tokens are securities.
• The Central Bank is expected to function as the regulatory body for tokens that are not classified as securities and they are also working on a decentralized finance (DeFi) project called Open Capital Market.
Brazilian Regulator Working on New Crypto Laws
The head of the Brazilian financial markets regulator, João Pedro Nascimento, has announced that a new decree will be rolled out in “the next few days” that will allow government-appointed bodies to better police the crypto sector.
CVM Could Determine Which Tokens Are Securities
Per O Globo newspaper, this decree will likely grant the CVM (Securities and Exchange Commission) the power to determine which tokens are securities. Nascimento stated: “Whenever something touches on the field of securities, it will fall under the remit of the CVM.”
Central Bank Working On DeFi Project
The Central Bank is expected to function as the regulatory body for tokens that are not classified as securities. Furthermore, they are also working on a decentralized finance (DeFi) project called Open Capital Market in conjunction with CMV. The regulatory chief said he expected Open Capital Market to roll out sometime this year.
Tightening Regulations To Help Domestic Businesses
Last month, Central Bank claimed it was looking into tightening crypto regulations and its CBDC project – digital real – would help foster domestic businesses. They stated while other nations were focusing on retail-focused CBDC models; digital real was being designed with view to helping small businesses grow at faster rate.
CVM Aiming To Help Crypto Sector Development
Nascimento last year claimed CVM’s regulations would not hamper market development and their objective was “to help development of crypto space”. He added his agency’s rules should not strangle sector either