The Brazilian President planned to bring clarity to the existing Bitcoin law in Brazil and aimed to save the crypto investors from any kind of crypto companies’ fraud activities e.g FTX meltdown.
Brazil is a crypto-friendly country in South America. Over the last few years, it has been seen that country’s government agencies bring crypto-friendly laws & bills so that native companies can provide crypto-related services under full compliance with the financial laws. In Nov 2022, former Brazilian President Jair Bolsonaro approved a Bitcoin law.
Now in the latest, a decree came to light, signed by the current Brazilian President Lula da Silva. The current president recently signed a series of decrees and measures to change what the previous government established laws.
The new presidential team is working to bring some changes in the existing crypto regulation framework so that Brazilian companies can get better clarity on the crypto laws & also to ensure the safety of the crypto investors.
For this crypto-related decree, a dedicated team was established by the president. This team includes the executive secretary of the Ministry of Finance, Gabriel Galípolo, and the secretary of economic reforms, Marcos Pinto.
Reports noted that the initially proposed crypto regulation system was aiming to handover the crypto regulation authority in the hand of the Central Bank agency but now a new decree noted that the Central Bank (BC) and the Brazilian Securities and Exchange Commission (CVM) will help to regulate the crypto sector through their technical support.
Crypto leaders in the Brazilian crypto community believe that the decree will bring new provisions against crypto companies, where all the companies will be forced to manage company funds & customers’ funds separately, to ensure the user’s fund reserves.
A few crypto proponents noted that the new decree came to light because of the recent bad incidents that happened in the crypto sector e.g bankruptcy of multiple crypto companies where crypto Investors lost huge amounts of money on the platform.