Today the Banco Central do Brasil announced its plans to regulate crypto-assets, including stablecoins. This year it will look at formulating rules for stablecoins used for payments and foreign exchange, but it described this work as ‘internal planning’. The central bank will launch a second consultation around virtual asset service providers (VASPs), including the rules they must adhere to and their authorization. Plus, it plans to provide a complementary framework that includes prudential regulation and VASP reporting.
The regulatory proposals will be finalized in 2024, with a key objective of protecting investors from fraud and scams. The Banco Central do Brasil is also keen on ensuring that VASPs adhere to anti money laundering (AML) and similar compliance procedures.
It follows the central bank’s first consultation, which ended in January and canvassed various crypto-related topics. These included asset segregation, risk management, cybersecurity and disclosures reflecting the comprehensive nature of the consultation.
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