Referring to the bill, Senator Carlos Portinho said, “The industry itself revised some concepts, so it preferred to sit down and start over. We have to exercise participatory democracy. Projects like this need to be debated to arrive at a more current text and with more legal certainty.”
Brazil’s Securities and Exchange Commission (CVM) pressed for changes in the cryptocurrency bill to fix a loophole concerning the regulation of digital assets. Moreover, the agency plans to launch Regcon, an automatic system for registering securities consultants, on September 16.
The cryptocurrency bill, scheduled for discussion later this month after the Brazilian Congress failed to vote on it in August, contains a loophole related to how crypto assets will be regulated in the nation.
Going by Article 1 of the bill, it remains ambiguous whether digital assets besides Bitcoin and NFTs will be classified as securities. Article 3 further obfuscates the matter by stating that any type of financial product or service that is capable of being digitized will be exempt from regulation.
This means that many physical tokens, including carbon credits, real estate funds, and court orders, can be structured within blockchains without being considered as digital assets by the law. CVM highlights this loophole and demands corrections in the cryptocurrency bill.
Senator Carlos suggests the best option would be writing the bill from scratch, stating,
“If [the bill] is approved as it currently is, it will please few.”
So far, the bill’s chances of being amended are slim, with Deputy Expedito Netto noting that it would be impossible to make any corrections at this time.
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