Tcodevelopment

Summary

• The Head of the Brazilian Securities and Exchange Commission (CVM) has announced that a new decree will be released in the coming days to better regulate the crypto sector.

• This decree is expected to grant CVM the power to determine which tokens are securities.

• The Central Bank will 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 Says New Crypto Laws Coming

The head of the Brazilian financial markets regulator, João Pedro Nascimento, has stated that a „decree“ will be released in „the next few days“ that will allow government-appointed bodies to better police the crypto sector. He added that this decree will likely grant the Securities and Exchange Commission (known in Brazil as CVM) the power to determine which tokens are securities.

Regulatory Power

Per Nascimento, whenever something touches on the field of securities it will fall under remit of CVM. Meanwhile, he noted that Central Bank is expected to function as regulatory body for tokens not classified as securities. Moreover, Nascimento claimed that these regulations have been „very well received“ by crypto sector and they have also been focusing on decentralized finance (DeFi) project called Open Capital Market with Central Bank’s collaboration.

Tightening Regulations

Late last year, Nascimento claimed that CVM’s regulations would not hamper domestic crypto market development and his objective was to help its development without making rules strangling it. Last month, Central Bank claimed it was also looking to tighten crypto regulations with its central bank digital currency (CBDC) project Digital Real; designed with view of helping small businesses grow faster rate than other nations’ retail-focused CBDC models.

Conclusion

It appears Brazil is gearing up for tighter regulation on cryptocurrencies with upcoming decrees from both Securities and Exchange Commission (CVM) for classifying security tokens and from Central Bank for other types of tokens such CBDCs along with DeFi Projects like Open Capital Market .