PUBLICATIONS

Last Tuesday (11/29), the “Câmera dos Deputados” approved the basic text of Bill No. 4,401/21, also known as the Regulatory Framework for Cryptocurrencies, which regulates the use of cryptocurrencies, as well as the provision of services of virtual assets, and now goes to presidential sanction.

The legal text brings guidelines for the “provision of virtual asset services” and regulates the operation of companies providing these services, such as exchanges and intermediaries of crypto-asset negotiations, which will now have to obtain specific licenses and registrations to operate in the sector and follow rules of good governance practices, information security and data protection, as well as prevention of money laundering and terrorist financing.

As a measure of investor protection, the framework provides for the creation of the new crime of embezzlement specializing in virtual assets, with the application of a penalty between 2 and 6 years and a fine, to those who commit fraud using virtual assets, securities or financial assets.

Despite establishing stricter standards for the inspection of operations involving crypto assets, the bill delegated the appointment of the regulatory body for this market to the Executive Branch. Among the attributions of the body responsible for regulation will be the creation of specific rules in relation to capital requirements, risk controls, asset segregation, security infrastructure, and other matters that are currently the responsibility of the Central Bank and the Securities Commission.