The BRICS organization and its member countries are seeking to implement a new regulatory framework for cryptocurrencies in order to guarantee legal clarity for users of these digital assets.
The BRICS countries, an organization made up of China, South Africa, Russia, Brazil e India, five of the countries with the most important emerging economies globally, and which are entering the world of cryptocurrencies, and digital assets, seek to establish regulations on the use of crypto assets to offer regulatory clarity to their users. Most of the countries that make up this organization have already begun to implement their own legislation on the use of cryptocurrencies, such as China, Russia and South Africa, while in others such as Brazil, discussions are beginning to propose new legislation that integrates digital assets.
En este sentido, Soraya Thronicke, senator and member of the Brazilian Social Liberal Party, he presented a bill that integrates a series of regulations aimed at exchange companies, custody houses and issuers of cryptocurrencies and digital assets, which seeks to regulate transactions and operations with cryptocurrencies under the regulations of the Securities and Exchange Commission (SEC) of Brazil and the Central Bank of the country.
The bill presents actions such as consumer protection, the collection of obligations and taxes on cryptocurrencies, criminal enforcement in case of crimes and supervision of the digital asset industry within Brazilian territory.
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Regulatory situation in Brazil regarding cryptocurrencies
The approval of legislation that integrates cryptocurrencies and digital assets is a need that has been present in Brazil for a long time. The digital industry is a sector that grows and develops every day. Technological innovation, the development of new payment systems and other applications that involve cryptocurrencies, mean that Brazilian companies and businesses that provide services related to crypto assets need legal and regulatory clarity to operate within the country.
However, this has not been possible in part due to the refusal of Brazilian banks to take action that would allow working and integrating cryptocurrencies into the sector. So now, with the presentation of a bill that seeks to integrate the regulations of the SEC and the Central Bank, the path is paved for an industry in constant growth and development.
Implications of the new bill
Senator Thronicke's proposal suggests that, depending on the commercial activity carried out by cryptocurrency users, companies and businesses, the regulatory framework to be established will depend on the Central Bank or the SEC. In this sense, all activities related to the use of cryptocurrency will be the responsibility of the Central Bank of Brazil. Bitcoin and other cryptocurrencies as a means of payment and exchange of value. Whereas when digital assets are used as collateral for loans or investment assets, it will be up to the Brazilian SEC to impose the regulatory framework.
Likewise, the supervision of commercial activities within the cryptocurrency industry will be carried out by the Central Bank of Brazil together with the SEC, as the stock exchange and securities control authority, in addition to the Brazilian Tax Agency and the country's Supervisory Board.
Likewise, the bill proposes a model of protection for users against fraud and illicit activities, imposing sanctions for those who engage in pyramid schemes, Ponzi schemes, or any other type of scam. The law proposes that the sanctions and punishments in force in the regulations against financial crimes be extended and applied within the new bill for cryptocurrencies. Likewise, Senator Thronicke proposes that pyramid schemes and other crimes be considered federal crimes, considering the possibility of establishing sanctions, fines and prison sentences according to the magnitude of the crime committed.
Finally, the bill also states that those companies and businesses that provide services as cryptocurrency custodians cannot use investors' funds to carry out commercial activities without prior authorization from the investors themselves.
Importance of cryptocurrencies within the BRICS countries
The development of cryptocurrencies, digital assets and digital currencies issued by central banks (CBDC) play an important role in the financial and economic system of the whole world. But within the BRICS countries their role is much more special.
So much China, South Africa, Russia, Brazil e India They have emerging economies that are in full development, and that can offer great growth opportunities to potential investors. Thus, considering the interest that Bitcoin and other crypto assets have aroused in large investors and multinational companies, such as microstrategy, establishing clear legislation is of utmost importance for the development and growth of these countries as leaders in the cryptocurrency and digital asset industry.
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