The Central Bank of Brazil Seeks Feedback on VASP Regulation
The Central Bank of Brazil is seeking input from market participants and individuals on the regulation of Virtual Assets Service Providers (VASPs) operating in the country. This move comes after the approval and sanction of the cryptocurrency assets law in December 2023. To prepare the rules that VASPs would have to follow, the bank has opened a public consultation and introduced a questionnaire consisting of 38 questions.
Respondents have the option to answer the questionnaire totally or partially. The questions cover various themes, including asset segregation and risk management, activities and assets traded, essential services, governance and conduct rules, cyber security, customer protection, transition rules, and general feedback.
One key area of focus is asset segregation, which was initially proposed to be part of the approved cryptocurrency assets law but was later omitted due to potential limitations on VASP operations. The public consultation will remain open until January 31, 2024, and all answers will be made available for public review on the bank’s website.
Hot Take: Central Bank of Brazil Embraces Public Input on VASP Regulation
The Central Bank of Brazil’s decision to seek feedback from market participants and individuals on the regulation of VASPs demonstrates a commitment to ensuring inclusive and transparent policymaking in the crypto industry. By opening a public consultation and allowing stakeholders to provide their input, the bank aims to develop rules that align with the needs and concerns of the crypto community. This collaborative approach will likely result in regulations that promote innovation while ensuring the integrity and security of virtual asset transactions. The active participation of individuals and market participants in shaping the regulatory landscape showcases Brazil’s progressive stance on virtual assets and its commitment to fostering a conducive environment for the growth of the crypto industry.
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