Brazil, after implementing some rules to govern cryptocurrencies in 2022, is preparing to unveil a more detailed regulatory framework to oversee the crypto sector. In a recent development, the Central Bank of Brazil has stated that it would bring a complete set of rules to its Web3 community towards the final stage of 2024. Interestingly, Brazil succeeded India to chair the group of nations in G20 last year. where working to enforce globally workable crypto rules is a top priority.
According to a Reuters report, Brazil's financial authorities have decided to analyze all Web3 use cases and their possible consequences to formulate new rules in detail. Once decided, the rules will be phased in to give industry players ample time to bring their businesses into compliance.
Without revealing too many details about “internal planning”, Brazil's apex bank has confirmed that laws to control the use of stablecoins and the role they may play in foreign exchange settlements and other payments are in the works this year .
In the coming days, Brazil will launch a consultation to get input from the public and experts on the type of rules that should be introduced for the Web3 sector to make it safer for the investment community. This consultation, however, will be Brazil's second initiative.
In December 2022, Brazil had ordered crypto companies operating in its territory to obtain a relevant “virtual service provider” license and register with the relevant authorities. In addition, the government had also instructed police units to create a new category under the “crime of fraud” that would deal with crypto-related financial scams.
Going forward, Brazil aims to follow India in making virtual asset service providers comply with anti-money laundering rules. The country is also currently moving forward with its wholesale CBDC project called DREX. The nation is also currently hosting the G20 Techsprint program.
In February this year, the Financial Stability Board (FSB), a global information technology watchdog, said policymaking related to cryptography, asset tokenization and responsible handling of artificial intelligence (AI) would remain key points of focus for the G20 under Brazil this year. course
Despite finalizing a crypto roadmap for G20 nations to adopt for crypto monitoring under India's G20 chairmanship last year, the FSB strongly believes that more legal clarity is directly needed to regulate sensitive sectors such as cryptography and AI.
