Brazilian Securities Watchdog Demands Changes in Cryptocurrency Bill

CVM, the Brazilian securities watchdog is now requesting specific changes to the cryptocurrency bill that is currently awaiting discussion in Congress. This organization seeks to fix a loophole in current legislation that would prevent certain tokens from being considered securities.

Brazilian CVM Presses For Changes In Current Cryptocurrency Law

CVM, a Brazilian securities watchdog is pushing for changes to the cryptocurrency bill. This will clarify how virtual assets in Brazil will be treated. This new directive is a departure from the previous administration that had not made any proposals about this bill.

The CVM specifically requests that the text be changed to allow certain digital assets, such as court orders, carbon credits, and receivables, to be structured in a Blockchain but not to count as virtual assets under the current cryptocurrency bill.

These new details have not yet been corrected and, according to law proponents, it would be impossible to include this correction. Deputy Expedito netto, the bill's rapporteur, stated that he wasn't aware of the details, but that it was impossible to alter the bill's current text.

Senator Carlos Portinho believes it would be more beneficial to create a new cryptocurrency bill entirely from scratch. He said:

The industry revised some concepts and preferred to start again. Participatory democracy is essential. To reach a more current and legal-secure text, projects like this must be discussed. It will not be approved as it is.

Other Solutions

The current cryptocurrency bill may be unsalvageable due to the differences between the bill's proposers and representatives from the Brazilian CVM. There is still hope that the bill will be passed with the effort and time that the lawmakers put into it.

This could mean that the current version of the bill is approved by Congress and the executive can veto some portions of it or change and define by decree certain details that have been criticised.

Although the final discussion on the cryptocurrency bill was scheduled for August, Congress is focusing on the October general elections. This September will be the last time this project can still be discussed before the elections.

What do you think of the Brazilian CVM's thoughts on the yet to be approved cryptocurrency bill? Leave a comment below.

By: Sergio Goschenko
Title: Brazilian Securities Watchdog Demands Changes in Cryptocurrency Bill
Sourced From:
Published Date: Sun, 11 Sep 2022 17:30:43 +0000

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