Bitcoin
$42,811.50-6.10%
Ethereum
$3,009.51-5.92%
XRP
$0.942207-4.92%
Cardano
$2.12-2.61%
Polkadot
$29.25-8.34%
Stellar
$0.282997-5.65%
Dogecoin
$0.210182-5.61%
Chainlink
$23.59-9.57%
Uniswap
$21.26-6.34%
Polygon
$1.15-7.56%
Litecoin
$160.79-4.02%
Bitcoin Cash
$542.46-7.28%
Cosmos
$35.41-12.98%
Algorand
$1.70-8.86%
Wrapped Bitcoin
$42,834.25-6.01%
Filecoin
$74.73-6.04%
The Graph
$0.707846-8.82%
Tron
$0.092714-3.82%
Ethereum Classic
$49.57-7.14%
Aave
$296.14-8.69%
Tezos
$5.25-11.12%
Monero
$231.39-8.64%
NEO
$41.49-8.52%
EOS
$4.22-9.14%
IOTA
$1.31-9.44%
BitTorrent
$0.003370-6.95%
Bitcoin SV
$137.57-8.64%
Waves
$24.62-3.32%
Maker
$2,452.21-7.41%
Dash
$171.60-5.67%
Decred
$120.31-9.91%
ICON
$1.66-0.54%
Decentraland
$0.682081-10.25%
OmiseGO
$10.66+18.83%
NEM
$0.155038-8.43%
Zcash
$118.89-6.56%
NuCypher
$0.286738-7.53%
Qtum
$10.41-8.81%
Yearn Finance
$29,427.48-6.60%
Paxos Standard
$1.00+0.62%
Bitcoin Gold
$55.80-7.84%
Basic Attention Token
$0.660470-6.52%
0x
$0.916896-7.99%
Bancor
$3.55-6.81%
Ren
$0.795561-6.34%
Fetch.ai
$0.686365-3.34%
Band Protocol
$7.65-8.47%
Siacoin
$0.015639-8.32%
Kava.io
$5.15-8.16%
Nano
$4.87-5.52%
Loopring
$0.405367-5.98%
Storj
$1.16-6.84%
Lisk
$3.07-11.39%
Numeraire
$39.75-8.32%
Civic
$0.423663-8.34%
Orchid
$0.333678-6.50%
PAX Gold
$1,774.21+1.03%
Augur
$21.88-8.02%
Aragon
$5.02-10.76%
Enzyme
$103.94-7.27%
district0x
$0.153838-7.21%
Kyber Network
$1.51-7.87%
SingularDTV
$0.001390-0.36%
Tether
$1.00-0.02%
USD Coin
$1.00+0.03%
Dai
$1.00-0.01%

Brazilian Financial Authorities Announce Regulatory Sandbox For Blockchain

“This initiative is an answer to great transformation”, the regulators said.

Jun 17, 2019 at 10:30 p.m. UTC
Updated Sep 13, 2021 at 9:19 a.m. UTC

Four of Brazil’s major 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

Superintendent of Private Insurance recently announced their intention to adapt new regulations to manage fintech and cryptocurrency advances.

The regulations will affect Brazil’s securities, financial, and capital markets, according to the regulators.

The institutions will also create a regulatory sandbox in the hopes of understanding and allowing concessions for new fintech ideas.

Money Impulse

The increasing commercial activity surrounding new technologies is the main reason behind the regulatory sandbox initiative.

“The use of innovative technologies as distributed ledger technology, blockchain, robo-advisors and artificial intelligence has allowed the rise of new business models, reflecting a bigger offer and reach," the regulators said.

In the case of blockchain, the Secretary of Treasury talked about the utility of DLT in Brazil’s financial markets. It also referred to cryptocurrencies and ICOs for financing.

Brazil currently has the highest number of cryptocurrency holders in Latin America and occupies the fifth position globally. Experts estimate that 8% of Brazil’s population will own some form of cryptoasset by 2019.

The new regulatory initiative comes after the announcement of regulation on cryptocurrencies earlier this year by the Financial Supervision Counsel of Brazil. In this case, the regulation follow the same rules as in money laundering, with fines as high as $5 million for scofflaws.

Looking for recognition

As regulatory efforts defining the limits of cryptocurrency and blockchain technology use in business, an increasing number of Brazilian merchants that work with cryptocurrencies still lack proper classification in the financial market.

The lack of recognition by financial entities sabotages the growth of the blockchain and cryptocurrency, keeping new businesses from properly participating in the fintech space. Representatives in the field pointed out that despite regulations, banks still can close or deny bank accounts to businesses that work with new, untested financial technologies.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...