The market regulator in Brazil claims it is creating a set of industry standards because it wants “transparency” in cryptocurrencies. The organisation collaborates with the country’s Economy Ministry, which might be another setback for MPs wanting to regulate the industry.
The Securities and Exchange Commission, or CVM as it is called locally, famously reversed course on a somewhat lax approach toward cryptocurrencies earlier this month and quickly said that it wants to play a significant role in the development of crypto legislation.
Although the CVM is now under new leadership, its previous leader seemed content to let the commission ignore the situation. As a result, MPs drafted a private member’s bill that is currently pending final approval from parliament and is mostly pro-business.
The President may be forced to veto the entire law as a result of the CVM’s last-minute intervention, ending a process that started back in 2015.
A meeting with the ministry’s policy creation unit was held in Rio de Janeiro late last week, according to a statement from the CVM. “Cryptoassets” was one of the main topics discussed in that meeting.
The head of CVM, Joao Pedro Nascimento, was reported as saying the organisation was “attentive to the issue” of cryptocurrencies and “will soon issue” its own “advisory” standards for the industry. He asserted that “transparency issues” in cryptocurrency needed to be “explored.”
Nascimento came to the conclusion that the public needs access to information about crypto assets that is delivered to them in a straightforward and impartial manner.
The use of cryptocurrencies is expanding in Brazil. Brazilians have spent more money than ever this year on cryptocurrency purchases, according to figures released by the government earlier this month. In just 31 days in May, cryptocurrency investors spent a total of USD 912 million buying coins, shattering their previous spending records.
Numerous significant Latin American crypto companies have also launched bitcoin cashback credit cards in Brazil, rewarding users with BTC rewards when they make purchases using local currency.