Brazil’s Central Bank released its much-awaited public consultation on crypto asset regulation late Thursday. Via this consultation, the BC seeks feedback from the public and the industry on 38 questions specific covering eight areas pertaining to regulation of cryptocurrencies and virtual asset service providers.
🔑 This is a critical moment in rulemaking process, as the bank will use the submitted comments to create draft regulation that will be released mid-2024 in the form of a second public consultation. This draft will be open for public comment before the final version is then released thereafter.
Alessandra Rossi Martins joined the show to help us understand the contents of this consultation and the next steps. Alessandra is a partner at Machado Meyer Advogados, where she steers the firm’s crypto and fintech practice, and has been heavily involved in Brazil’s crypto legal and policy world for many years.
Key themes from this conversation:
how this consultation is novel and different compared to prior rulemaking processes, particularly as this is the first time Bacen has put forth specific questions to the public in this manner
the specific types of information and perspectives sought by the BC, including asset segregation and risk management, the hiring of essential services, transition and grandfathering provisions, and more
how the BC is wrestling with questions pertaining to the treatment of foreign brokerages and service providers
the types of stakeholders that the BC wants to hear from
next steps in the process, including when we can expect the second consultation and the final regulation
You can connect with Alessandra on Linkedin.
The Machado Meyer team graciously produced an English-language translation of the consultation document overnight which you can find here.
Have a great week everyone,