FameEX Hot Topics | Central Bank of Brazil Plans to Finalize Crypto Exchange Regulation by Early 2025

According to Nagel Paulino, head of the Central Bank’s regulatory department, the Central Bank of Brazil aims to finalize cryptocurrency market regulations by 2025. To achieve this, the institution will conduct a second public consultation to gather opinions from market participants and tailor the rules to local needs.

Brazil is moving closer to finalizing regulations for virtual asset service providers (VASPs) and their interaction with cryptocurrency. The Central Bank aims to complete VASP regulations by early 2025, allowing market participants time to comply with the finalized rules.

The delay in completing this task is due to ongoing public consultations, which seek the views of market participants on subjects relevant to finalizing existing drafts. From December to February, a public consultation was conducted using a 38-item questionnaire to gather input on several key aspects of the crypto industry, including asset segregation and risk management.

The Central Bank will issue a second public consultation this semester to adapt the existing proposals to the Brazilian market. Paulino explained, "The Central Bank already had a regulatory design, but the structure was very much based on international references. The local ecosystem of virtual asset service providers has its own particularities."

While this will conclude the institution’s task regarding VASP rules, several cryptocurrency-related subjects still need to be addressed, including the tokenization of assets, tariff rules, liquidity providers, and stablecoins. Stablecoins are particularly relevant due to their popularity and volume in the Brazilian cryptocurrency market.

Federal Deputy Aureo Ribeiro, responsible for the current cryptocurrency asset law in Brazil, stated that these consultations will help create a “regulatory framework that will allow the market to grow and attract the attention of global investors.” The ongoing efforts by the Central Bank of Brazil reflect its commitment to establishing a comprehensive and adaptive regulatory environment for the burgeoning cryptocurrency market, ensuring that local needs and global standards are both met effectively.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.