Brazil’s President signed a law to regulate the cryptocurrency market. The Central Bank will supervise virtual asset service providers, and token issuance will fall under the jurisdiction of the Comissão de Valores Mobiliáriosn (CVM).
Brazilian President Luiz Inácio Lula da Silva signed government decree No. 11.563, establishing the powers of the Central Bank and the CVM in accordance with bill No. 14.478, passed in December 2022, concerning the legal status of cryptocurrencies in Brazil.
According to the document, the Central Bank received the authority to regulate virtual asset service providers and would be responsible for supervising cryptocurrency companies. The decree will take effect on June 20.
The document also states that the regulation of digital securities will still fall under the jurisdiction of the Comissão de Valores Mobiliários (CVM). Thus, the issuance and distribution of tokens classified as securities will be controlled by the CVM and not by the Central Bank.
Bill No. 14.478 was signed by the President of Brazil at the end of 2022, providing a new regulatory framework for developing and managing organized securities markets, including tokenized securities.
