Brazilian Securities Watchdog Wants Changes In Crypto Bill

The CVM, the securities watchdog in Brazil, recently demanded that the crypto bill, which is slated for discussion in Congress be changed.

The current document reportedly has a loophole that the organization wishes to correct, as it would mean that some tokens are not treated as securities like carbon credits and tokenized physical items.

The CVM’s demands

The securities watchdog in Brazil is demanding that some changes be made to the bill that will determine the treatment of virtual assets in the country.

The organization’s new directive has taken a more active stance, which had not been seen in the previous administration, as it had not called for any proposals regarding the crypto bill in question.

The CVM specifically wants the text to be changed, which relates to how some digital assets will be treated, including court orders, carbon credits, and receivables.

The current crypto bill dictates that these will qualify as virtual assets because they will be structured in a blockchain.

But, no corrections have been made to these details, and proponents of the law have said that there is no longer any opportunity for any corrections to be made now.

The bill’s rapporteur, Deputy Expedito Netto, stated that he had not been aware of the details in a question, but also said that the text of the bill could no longer be changed.

Suggestions

Therefore, Senator Carlos Portinho asserted that rather than making changes to the bill in question, it is better to begin a new bill from scratch.

He said that some of the concepts had been revised in the crypto industry itself, so it is a good idea to start over.

He added that participatory democracy needs to be exercised here, which means that there should be debate about such projects to ensure they remain updated and have legal certainty.

He went on to say that if the crypto bill is approved as is, it is unlikely to please a lot of people.

Other solutions

It is possible that the cryptocurrency bill may be deemed unsalvageable due to the differences that have arisen between the Brazilian CVM and the bill’s proponents.

But, there is a possibility that the effort and time that lawmakers have invested in drafting the crypto bill may not go to waste completely.

This possibility relates to Congress sanctioning the current version of the crypto bill and some parts of it getting vetoed, defined, and changed by the executive via a decree.

This is because only some of the areas of the bill have received criticism and not all of it. The ultimate discussion surrounding the bill had been scheduled to happen in August.

However, the focus of Congress has shifted to the general elections that are scheduled to happen in October.

The bill can be discussed in September, after which it would only happen once the elections are done. The popularity of crypto in Brazil has resulted in the need for developing a regulatory framework for it.

Leave a Comment