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The new nominee for CVM is pushing hard to bring legal structure to digital asset trading. He sees a much concerted effort should be made and that the regulatory authority be very strict and vigilant towards the cryptocurrencies operations.
Brazilian authorities seem to be in the mood for putting a close halt to the development of the crypto industry. The new nominee for CVM, (Brazil’s equivalent to the U.S. SEC), is not only pressing hard for the legality of digital asset trading but is also keen to put greater control and vigilance over this type of operation.
Otto Eduardo Fonseca de Albuquerque is the new director nominee who was nominated by President Jair Bolsonaro for the CVM board in June. His application was approved by the Economic Affairs Commission (CAEO) of the Federal Senate.
Concern over cryptocurrency
He has expressed his opinions on the increasing interest of people in cryptocurrency operations. He has assured that special focus will be given to virtual assets. The increasing interest was evident in the cryptocurrencies. However, it is not regulated by Brazilian authorities or any law. He disapproves of crypto. However, Brazil is the premier country to have deployed a crypto ETF. It exceeded the trading volume expectations. During his address to the Senate, Lobo shared his displeasure on the action of CVM in the past about the market.
The views of Lobo are different from the opinion of the current CVM President, Marcel Barbosa. He is of the view that innovation is not the sole property of regulators and that it should not be proposed by them only. Barbosa informed the media in September last year at a public meeting that new technologies push the frontiers of regulation. The role is to do what is new and make sure that this innovation impacts the market without harming the situation of the market participants.
In the current president’s role in the CVM, Brazil has put forward the regulatory sandbox with many projects that sought to apply new technologies in the field of public administration.
Brazilian rule
Brazil has two licensed Crypto ETFs. QR Bitcoin (QBTC11) is a Bitcoin-only ETF. It is operated by QR asset management and the Hashdex Nasdaq Crypto Index Fundo de indices (HASHI11).
Many fintech companies operate in cryptocurrency exchanges. The customers can use prepaid credit cards as long as people exchange their bitcoin for fiat before purchases.
The users need to comply with the KYC requirements demanded by law and file tax returns on these operations. It means that the country has control over the money movements of the users.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
