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Four of Brazil's largest financial authorities have come together to regulate emerging technologies, including blockchain.
The Ministry of Finance, the Central Bank of Brazil, the Securities Commission and the
The Superintendent of Private Insurance recently announced plans to adapt the new regulations to manage fintech and cryptocurrency advances.
According to the regulators, the regulations will affect the markets of securities, financial markets and capital of Brazil.
The institutions will also create a regulatory sandbox in hopes of understanding and allowing concessions for new ideas in financial technology.
Money Impulse
Increasing commercial activity around new technologies is the main reason for the sandbox regulatory initiative.
"The use of innovative technologies such as distributed ledger technology, blockchain, robotics consultants and artificial intelligence has allowed the rise of new business models, reflecting greater supply and scope" , said the regulators.
In the case of blockchain, the Treasury Secretary spoke about the usefulness of DLT in the Brazilian financial markets. He also referred to cryptocurrencies and ICOs for funding.
Brazil currently has the largest number of cryptocurrency holders in Latin America and ranks fifth in the world. Experts estimate that 8% of the Brazilian population will have some form of cryptobadet by 2019.
The new regulatory initiative comes after the announcement of cryptocurrency regulations earlier this year by Brazil's Financial Supervision Counsel. In this case, the regulations follow the same rules as in money laundering, with fines of up to $ 5 million for mockers.
In search of recognition
While regulatory efforts are defining limits on the use of cryptocurrency and blockchain technologies in companies, a growing number of Brazilian merchants working with crypto-currencies have still not been properly clbadified on the market. financial market.
The lack of recognition of financial entities sabotages the growth of blockchain and cryptocurrency, preventing new companies from participating properly in the fintech space. Field representatives pointed out that despite regulation, banks can still close or deny bank accounts to companies using new and untested financial technologies.
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