The Brazilian Association of Crypto-economy (ABcripto) sent, on February 28, suas contribuições para as Consultas Públicas 109/2024, 110/2024 e 111/2024 do Banco Central do Brasil (Bacen), that establish the foundations of the regulation of virtual asset service providers (VASPs). The entity evaluates the proposals positively, but suggests adjustments to strengthen legal security, ensure protection for investors and preserve Brazil's competitiveness in the global scenario.
For Bernardo Srur, CEO of ABcripto, the regulation of the sector needs to balance innovation and consumer protection, without imposing excessive restrictions on companies. Regulatory advancement is essential to provide predictability to the market and encourage long-term investments. Our priority is to ensure rules that guarantee the safety of customers, promote innovation and position Brazil as a competitive environment for digital business. The Central Bank has been conducting an open and technical dialogue, and we remain committed to contributing to a modern and efficient regulatory framework, affirms Srur. The contributions of ABcripto were developed collaboratively by its members, led by the Central Bank Working Group and the Taxation Working Group, Exchange and Stablecoins, and include suggestions to improve the regulation of the sector.
The full contributions are available atABcripto site
Check the main contributions of ABcripto to the Central Bank
Consulta Pública 109/2024 – Regulation of PSAVs
- Asset segregation and risk managementEnsuring the separation between the assets of PSAVs and the assets of clients is essential for market security. ABcripto has historically defended the practice and proposed improvements to the requirements.
- Preservation of confidentiality and information securityThe strengthening of data protection standards is essential to ensure that financial and personal information of clients and companies is safeguarded against unauthorized access and cyber threats.
- Clear definition of the types of PSAVsThe regulatory proposal establishes distinct categories for the different agents in the sector, as liquidity providers, intermediaries, custodians and brokers, ensuring appropriate rules for each operating model and avoiding disproportionate requirements.
- Competitiveness of the domestic market and regulatory balanceThe standards need to be compatible with the best international practices and regulatory equivalents to ensure that companies maintain their sustainable development, preserving the dynamics and innovation, reducing the possibility of regulatory arbitrage, without the addition of unnecessary controls that could compromise the competitiveness of the sector and integration with international markets.
- Review of regulatory interconnection between different regulatorsA clear delineation of the regulators' competencies is essential to avoid overlaps in roles and interdependency effects that may lead to regulatory gaps, legal insecurity and delays, ensuring a more predictable and efficient business environment.
- Appropriate deadline for regulatory complianceA well-structured transition period allows PSAVs to make necessary adjustments without compromising their operations, ensuring progressive adaptation to new requirements.
Consulta Pública 110/2024 – Authorization Processes for the Operation of PSAVs
- Efficient licensing processThe creation of an agile authorization flow proportional to the size of companies favors innovation in the sector.
- Governance and complianceThe alignment of governance requirements with the best practices of the financial market is essential to ensure transparency, operational solidity and efficient accountability mechanisms.
- Structured regulatory transitionThe regulation needs to be implemented gradually, allowing PSAVs to adjust their internal processes and operational structure without negative impacts on the market and investors.
- Flexibility for companies of different sizesThe regulation must take into account the size and complexity of the operations of PSAVs, ensuring that regulatory requirements are proportionate to your scale of operation.
Consulta Pública 111/2024 – Exchange Rules for Virtual Assets
- Differentiation between currency exchange operations and transactions with virtual assetsStablecoins and other digital assets have their own characteristics that need to be considered to avoid being automatically equated with traditional foreign exchange operations, preventing distortions in the sector.
- Avoid barriers to the international marketRegulation must allow Brazilian companies to operate globally without restrictions that could compromise their competitiveness and innovation in the digital assets sector.
- Autocustody and prevention of money launderingA balance between the prevention of illicit activities and the operational viability of PSAVs must be maintained, ensuring that self-custody remains in place and that controls for different types of illicit prevention can be incorporated safely and efficiently.
- Clarification of the role of stablecoinsThe differentiation between the types of stablecoins and their respective functions in the market should be incorporated into the regulation, avoiding generic restrictions that may limit its use.
- Adaptation to market dynamicsThe regulatory model must take into account the specificities of decentralization, of technological innovation and the globalization of the sector, ensuring that the standards are appropriate to the reality of the sector.
- Competitiveness of the national market and integration with the global marketThe review of obligations that have an impact on the national market is essential to preserve market liquidity and ensure that regulation does not undermine already established business models in the global cryptocurrency landscape.
- Continuous collaboration with the Central BankABcripto reinforces its commitment to work alongside the regulator to build a balanced regulatory framework, efficient and focused on the sustainable growth of the crypto economy in Brazil.
