Change of direction for Brazil on cryptocurrency regulation. The financial regulator has just announced that it plans to create a new independent institution. She would be in charge of regulation of the cryptocurrency industry.
This information is shared while Brazilians are still celebrating (or not) the return to power of the President Luiz Inacio Lula da Silva, known as Lula. Indeed, two days after his election, the National Securities and Exchange Commission (CVM) made shares its intentions in terms of cryptocurrencies.
As a reminder, the CVM corresponds to the securities market authority, which it regulates. To date, she alone holds the competence to regulate the cryptocurrency market in the national territory. However, the authorities consider that it does not have the means necessary to carry out its mission.
A new institution to regulate cryptos
Indeed, the president of the CVM, Joao Pedro Nascimento, explains that this decision is under discussion in particular because of the lack of personnel that the organization is currently experiencing. However, this lack “affects the attention it might give to growing cryptocurrency markets. »
“The Securities Commission cannot survive without staff, the market continues to grow. In a short time, we will have to create a superintendency to deal with cryptocurrencies. »
Joao Pedro Nascimento, president of the regulator CVM.
In this context, he also hopes to be contacted by the economic teams of the new President Lula in order to negotiate on certain issues, formerly dealt with by the former government.
An institution with extensive powers
Since its creation is not yet recorded, only little information has been revealed. However, we know that the new institution – if it sees the light of day – and unlike the current Securities Commission, would have a more active role in cryptocurrency regulation. As such, its advice should be required on many important issues related to these new assets. More specifically, its primary purpose would be to soversee the sectorso to exercise a monitoring deemed “necessary” on all market players/participants.
For the moment, the deal is not yet concluded but is seriously on the table. The authorities could therefore accept it and implement it before the end of 2023.
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