On 21 December 2022, the Brazilian President sanctioned Law n. 14.478/2022, also known as the Brazilian Cryptoassets’ Legal Framework, ruling on the theme of cryptoassets in the Brazilian landscape. The Legal Framework has established its own definition of cryptoassets included in its scope and of cryptoexchanges, labeled as providers of virtual assets’ services (“prestadoras de serviço de ativos virtuais”), as well as guidelines that shall be considered by these companies.
Moreover, the Brazilian Legal Framework provided that the Executive Branch will appoint an entity responsible for the regulation of cryptoassets included in its scope, as well as its jurisdiction, particularly regarding the cryptoexchanges’ operation, such as authorization, monitoring and control. Despite that, certain assets, e.g., securities and national, international, and electronic currencies, will be excluded from the scope of the Brazilian Cryptoassets’ Legal Framework, as per its text.
Regarding the authorization for the cryptoexchanges’ services, the companies that are already authorized by the Brazilian Central Bank to provide financial services will also be able to perform virtual assets’ related services, even if exclusively. However, these companies will have to comply with the rules to be established by the entity that will be appointed by the Brazilian Executive Branch to regulate the matter.
To the companies that are already providing virtual assets’ related services, this entity soon to be appointed by the Executive Branch will provide the terms and deadlines to fully compliance with its rules. Thus, we expect further regulation on the subject to happen in the near future.
At last, the Brazilian Cryptoassets’ Legal Framework has a vacatio legis of 180 days after its sanctioning to become fully effective, which will occur on 30 May 2023, except if otherwise provided.
Our team is at your disposal for further clarifications, as well as to provide assistance with the procedures for fulfilling legal and regulatory obligations for cryptoexchanges and investors in cryptoassets in the Brazilian landscape.