Cointelegraph reports that one of the issues with the law is that it does not consider tokens as digital assets or securities, and as a result, they are not subject to SEC rules.
According to Cointelegraph, the Brazilian Securities and Exchange Commission (SEC) wants to alter the nation’s legal system with respect to cryptocurrencies.
According to Cointelegraph, one of the issues with the law is that it does not treat tokens as digital assets or securities, and as a result, they are not subject to SEC rules. This update follows the election of a new board and reports that the bitcoin industry is becoming more important to the nation’s financial services.
According to Cointelegraph, Brazilian politicians have been drafting legislation based on cryptocurrencies since 2015. However, the senate didn’t approve the legislation until the final version was published in April 2022. The measure will be signed into law by the president of the nation when the Brazilian Congress completes its final changes. According to the wording that has been authorized, a virtual asset is a digital representation of value that may be electronically exchanged or transferred and utilized for investment or payment reasons.
Additionally, it emphasizes the significance of Know Your Customer (KYC) protocol practices and aids in the development of money laundering prevention strategies.
Non-fungible tokens (NFTs) are not considered securities under the proposed law, whereas the bulk of other tokens have not yet received official recognition.
The definition of virtual assets, previous authorization requirements, and the approval of corporate mergers in roles with the Cade [Brazilian Federal Trade Commission] are all areas where the aforementioned law requires modification, according to a spokesperson of Brazil’s SEC.
Additionally, Cointelegraph reported that lawmakers think a potential resolution might be to transmit the bill outlining the SEC’s and Brazilian Central Bank’s planned responsibilities in authorizing initial coin offerings and market-based laws to the president through decree. Another cryptocurrency-related law was submitted to the Brazilian Congress in June for approval.
