Brazil’s Central Bank now has the right to regulate and track digital asset-focused enterprises such as bitcoin (BTC) trading venues, centralized crypto exchanges, and wallet providers, thanks to a new regulation signed by President Lula. This legislation attempts to safeguard consumers and reduce the dangers related to digital assets.
This follows the global trend of investigating digital currencies supported by central banks.
In partnership with major payment businesses such as Visa and Mastercard, Brazil’s central bank would launch a pilot project for a central bank digital currency or CBDC.
Brazil, which has one of the largest marketplaces in South America, is home to the crypto exchange Mercado Bitcoin as well as licensed overseas payment providers such as Crypto.com and Bitso. Coinbase, a U.S. crypto exchange, revealed in March that it has teamed with local enterprises to enable crypto purchases for Brazilian citizens.
Other nations, including Brazil, are currently developing regulatory frameworks for digital assets.
In Europe, for example, Ukraine has recently expressed a desire to embrace the European Union’s newly established Markets in Crypto-assets (MiCA) rules. The framework intends to improve transparency, disclosure, and authorization for crypto issuance and trade.
However, regulatory storms continue to dominate the ecosystem of Web3 in the United States, where Securities and Exchange Commission chief Gary Gensler has launched an assault on market players.
Notably, Congress promoted the SEC Stabilisation Act, legislation aiming at reforming the agency and replacing Gensler as the chairman.
Significant changes in crypto legislation are expected in the next few years. Investors, legislators, and regulators are anticipated to continue working together to develop rules that would promote a more secure and inclusive crypto economy.