Legal Framework: Law No. 14,478/2022
Enacted in December 2022, Law No. 14,478/2022, known as the “Legal Framework for Cryptocurrencies,” came into effect in June 2023. This legislation establishes guidelines for the provision of services related to virtual assets, defining “virtual assets” as digital representations of value that can be traded or transferred electronically and used for payments or investments.
The law also criminalizes fraudulent use of virtual assets, including fraud and money laundering, providing sanctions that range from warnings to significant fines and, in extreme cases, suspension of the infringing company's activities.
🏦 Role of the Central Bank and the CVM
Decree No. 11,563/2023 assigned the responsibility of regulating, authorizing, and supervising virtual asset service providers (VASPs) to the Central Bank of Brazil (BCB). In 2024, the BCB initiated public consultations (CPs 109, 110, and 111) to define rules regarding:
Types of providers (brokers, custodians, intermediaries);
Minimum capital requirements and corporate structure;
Asset separation between company resources and client funds;
Compliance, governance, and transparency rules.
The Securities and Exchange Commission (CVM) also plays a role in this scenario, especially when crypto assets qualify as securities, such as in the case of investment tokens. The CVM maintains a vigilant approach to prevent and punish violations of laws and regulations in the securities market in the context of crypto assets.
🔄 Updates and Next Steps
Additionally, the Federal Revenue Service updated Normative Instruction 1,888/2019 to encompass new operations with crypto assets, such as international transfers, use on DeFi platforms, and fractionalization of NFTs, aiming to improve oversight and revenue collection.