Market Meditations | December 29, 2022
Regulators across the world have been itching to pass crypto regulation and the timely FTX implosion has opened the door to do just that. Thankfully for Brazilian citizens, their government has taken a common sense approach to that regulation.
- Brazil’s Chamber of Deputies and Senate passed crypto regulation this week that the president of Brazil has signed into law.
- The new law establishes a crime of fraud involving digital assets for which there is a 4-6 year jail sentence plus a fine.
- It also creates a “virtual service provider” license which is to be requested by digital asset companies, such as exchanges and trading intermediaries.
- Furthermore, the law gives oversight to the Brazilian Securities & Exchange Commission (CVM) for digital assets that are securities and a new body will be created to oversee digital assets that are not deemed securities.
- Companies will have 180 days to adapt to these new rules.
This new common sense law comes at a time when American residents are accusing lawmakers and regulatory agencies of giving FTX and SBF preferential treatment not afforded to others in the digital asset industry. While receiving preferential treatment and open lines of communication with agencies such as the SEC, SBF and crew were busy committing various financial crimes that came to light just weeks before a controversial digital asset bill (SBF had been helping draft) was brought to the House floor.