- According to a Brazilian regulator, the country is looking to monitor the crypto sector in the coming days.
- The boss also claims that his goal is to help the crypto space grow while avoiding suffocation.
The head of Brazil’s financial markets regulator says the body will issue a decree in the coming days that will allow government-appointed bodies to better oversee the crypto sector.
According to March 2 report, Joo Pedro Nascimento, president of the Securities and Exchange Commission (also known as the CVM in Brazil), stated that the “cryptoeconomy” will coexist with the traditional economy. He also mentioned that the decree would most likely give the CVM the power to determine which tokens are securities.
All crypto assets that meet the security definition are expected to be regulated by the CVM. The central bank will be the regulatory body that will take care of the tokens that are not classified as securities.
According to CVM CEO, crypto regulation has been well received by the industry so far. He also mentioned that CVM is working on a decentralized open capital market (DeFi) financing project. CVM is cooperating with the central bank on the project.
Nascimento said he expects the open capital market to launch sometime this year, saying:
“We will introduce decentralized financing in the capital market. It will begin with the transfer of custody of the funds.”
Strive to build regulations suitable for the crypto industry
Nascimento said last year that the regulations initiated by the Brazilian regulator would not hinder the development of the domestic crypto market.
The CMV boss also stated that his goal is to help the crypto space grow while avoiding regulations that would stifle the sector.
The central bank said last year that the authority is looking to tighten crypto regulations as well. She also said that her Central Bank Digital Currency (CBDC) project, Digital Reality, will help develop domestic businesses.
While other countries have focused on retail-based CBDC models, the bank claimed that digital reality is being created to help small businesses expand faster in Brazil.
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