An independent institution for the regulation of cryptocurrencies?

Brazil’s change of course on cryptocurrency regulation. The financial regulator has just announced that it is studying the possibility of setting up an new independent institution. It would be in charge of the regulation of the cryptocurrency sector..

This information is shared as Brazilians continue to celebrate (or not) the return to power of the. President Luiz Inacio Lula da Silva, known as Lula. In fact, two days after his election, the National Securities and Exchange Commission (CVM) made announced its intentions regarding cryptocurrencies.

As a reminder, the CVM is the securities market authority, which regulates. To date, it has the only competence to regulate the cryptocurrency market in the country. However, the authorities consider that it does not have the However, the authorities consider that it does not have the necessary means to carry out its mission.

A new institution to regulate cryptocurrencies.

In fact, CVM president Joao Pedro Nascimento says that the decision is being discussed in part because of the agency’s current understaffing. This shortage “affects the attention it could give to the growing cryptocurrency markets.”

“The SEC cannot survive without staff, the market continues to grow. It won’t be long before we have to create a superintendency that deals with cryptocurrencies.”

Joao Pedro NascimentoPresident of the CVM regulator.

In this context, he also expects to be contacted by the economic teams of the new President Lula to negotiate some issues, previously dealt with by the previous government.

An institution with broad powers

Since its creation has not yet been decided, only little information has been disclosed. However, it is known that the new institution -if created- and unlike the current Securities Commission, would have an more active role in the regulation of cryptocurrencies.. As such, its advice should be required on many important issues related to these new assets. More specifically, its main objective would be touevamente el sectorand therefore exercise a surveillance that is considered “necessary” over all market players/participants.

At the moment, the agreement is not yet closed, but it is seriously on the table. Therefore, the authorities could accept it and implement it before the end of 2023.

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