The Central Bank of Brazil to implement regulations for digital currency platforms by 2025

Brazil is nearing the completion of the process to establish regulations for virtual asset service providers (VASPs) and their involvement with cryptocurrency.

The goal is to have a comprehensive VASP regulation in place by early 2025, as stated by Nagel Paulino, who heads the regulatory division of the Central Bank. Market participants will be given a grace period to adhere to the finalised regulations. The timeline for this task has been extended due to a series of public consultations that the institution is currently carrying out.

These consultations seek to gather feedback from market participants on various important topics related to finalising existing drafts. A public consultation was recently held from December to February, where a comprehensive 38-question survey was used to collect input on crucial aspects of the cryptocurrency industry, including asset separation and risk management.

While the institution’s obligations regarding VASP regulations may be considered complete, there are still various aspects related to cryptocurrencies that require further attention. These include the digital representation of assets, pricing regulations, providers of market liquidity, and notably stable digital currencies. The significance of stablecoins is particularly notable given their widespread acceptance and trading volume within the Brazilian cryptocurrency sector.

Representative Aureo Ribeiro, the individual behind Brazil’s existing law concerning crypto assets, has emphasised that these discussions will play a vital role in establishing a regulatory structure that fosters market growth and captures the interest of international investors.

Source: Bitcoin.com News