Brazil’s central bank prepares public consultation on cryptocurrency regulation

BRASILIA, July 18 (Reuters) – Brazil’s central bank announced on Tuesday its plans to launch a public consultation regarding the regulation of cryptocurrencies in the second half of this year.

In a statement, the central bank emphasized its intention to gather suggestions and feedback from experts and the public before implementing the final rules, highlighting that companies already operating in the market will have a minimum of six months to comply with the legislation.

Specific measures will be taken to limit the risks associated with decentralized governance systems and to prevent investors from being exposed to these assets without appropriate levels of disclosure, said the central bank.

The government of President Luiz Inacio Lula da Silva delegated the authority to regulate cryptocurrency services to the independent central bank from June 20.

Despite this status, the central bank stressed the need for coordinated action among various regulators, such as the revenue service and the country’s Securities and Exchange Commission (CVM).

Reporting by Marcela Ayres; Editing by Steven Grattan

Source: Reuters