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The head of the Brazilian financial markets regulator says the body will roll out a “decree” in “the next few days” that will allow government-appointed bodies to better police the sector.
Per the newspaper O Globo, João Pedro Nascimento, the President of the Securities and Exchange Commission (known in Brazil as the CVM), stated that “cryptoeconomics” would work alongside “the traditional economy.”
He also added that the decree will likely grant the CVM the power to determine which tokens are securities.
The CVM is expected to begin “regulating all crypto assets that fit the definition of security,” the newspaper noted.
Nascimento was quoted as stating:
“Whenever something touches on the field of securities, it will fall under the remit of the CVM.”
The Central Bank is expected to function as the regulatory body for tokens that are not classified as securities.
The CVM chief stated that crypto regulation had thus far been “very well received” by the sector.
Nascimento added that the CVM is also focusing on a decentralized finance (DeFi) project called Open Capital Market. He stated that the CVM was working on the project in conjunction with the Central Bank.
He explained:
“We are going to bring decentralized finance to the capital market. It will start with the transfer of custody of funds.”
The regulatory chief said that he expected Open Capital Market to roll out sometime this year.
Yet More Regulations Incoming for Brazil’s Crypto Sector?
Nascimento late last year claimed that the CVM’s regulations would not hamper domestic crypto market development.
The CMV chief also stated at the time that his objective was to “help the development of the crypto space” – and to avoid making “rules” that could “strangle” the sector.
Last month, the Central Bank claimed that it was also looking to tighten crypto regulations. And it stated that its central bank digital currency (CBDC) project, the digital real, would help foster domestic businesses.
The bank claimed that while other nations were focusing on retail-focused CBDC models, the digital real was being designed with a view to helping small businesses grow at a faster rate.