The Central Bank of Brazil has announced that it plans to submit regulatory proposals by the end of 2024, adopting a phased approach to regulating cryptocurrencies and virtual asset service providers. This initiative marks a change in the previously anticipated timeline, as the bank's regulatory director, Otavio Damaso, initially expected the regulatory process to be completed by June 2024.
The bank decided to extend the timeline following a law passed in 2022 that calls for regulation by the central bank thereafter. After holding a first public consultation from December 2023 to January 2024 to gather social input on issues not covered by the 2022 law, including asset segregation of virtual asset service providers, the central bank is preparing to launch a second consultation in the second half of the year.
This second round of consultations will focus on regulatory texts and aim to create a robust regulatory framework with input from a wide range of social participants. The Central Bank emphasized the need for this informed approach due to the complexity and diversity of activities and structures in the virtual assets sector. The detailed work of the regulatory teams is a testament to the bank's commitment to providing comprehensive regulations for the emerging cryptocurrency market in Brazil.
