thecoinrise.com
Brazil’s Securities and Exchange Commission otherwise known as CVM is seeking to make adjustments to the nation’s legal framework as it pertains to regulation in the crypto space.
As per a local media report, the current bill failed to properly define tokens. It’s unclear if tokens are considered digital assets or securities, and as such, they wouldn’t be under the jurisdiction of the SEC. The regulator is therefore pursuing amendments to properly fill all gaps.
Brazil’s SEC’s Concerns over the Crypto Regulation Bill
According to the contentious bill, a virtual asset represents any digital asset with a value that can be traded or transferred electronically and also be used for payments or investments purpose.
On the other hand, it defines non-fungible tokens (NFTs) as non-securities as there are still talks as to whether or not they are securities.
The uncertainty as per the definition of tokens seems to arise following the inauguration of a new board by the regulator and the heightened importance of cryptocurrencies and their applicability to its financial system. The regulator also identified bottlenecks that would hinder it from functioning properly should the current bill be signed into law as it is today.
Should the regulator’s quest be accomplished, it would mean that all the work put into the bill since its discussions began seven years ago will be lost and the process will begin afresh.
The Brazilian lawmakers began working on regulations for cryptocurrencies but the bill just got assent from its senate in April. The final draft will be handed over to President Jair Bolsonaro to be signed into law once congress finishes its revisions.
Until a resolution is reached, Brazil’s Central Bank will oversee all inspections.
Last year, the regulator in a move to protect the average investors from scams and schemes introduced a jail term of three to ten years and other fines as determined by the judge for crimes involving digital currencies.
Meanwhile, the country is looking to change the landscape of its financial system via blockchain-powered projects. Itaú Unibanco, Brazil’s largest bank recently submitted a proposal for a DeFi liquidity pool which will be advanced through its innovation lab.