CVM, the Brazilian Securities Regulator announced, on November 1, that it may create a superintendence in order to regulate crypto-related markets. João Pedro Nascimento, president of the organization, said that the regulator is currently suffering from a lack of personnel that makes it challenging to give the attention needed to the growing cryptocurrency market.
Brazilian Securities Regulator (CVM) to Establish a Separate Crypto Regulatory Institution
Some regulatory agencies are having problems with the growth of cryptocurrency markets. They lack the resources to cover all market participants. CVM, the Brazilian Securities Regulator announced November 1st that it was creating a crypto specific superintendence in order to provide necessary oversight of all players within the market.
President of CVM Joao Pedro Nacimento stated that the CVM is facing a shortage of staff right now. This affects its ability to give attention to the growing crypto markets. Nascimento stated that the CVM was in discussions to implement procedures for more staff in 2023. He said:
CVM is not able to survive without staff, as the market grows. We will need to establish a superintendence in order to manage crypto assets within the next few months.
Nascimento explained also that he hopes that he will have conversations early with President-elect Luis Inacio Lula Da Silva’s economic team, in order to discuss issues the institution is already discussing with the government.
An Active, New Institution
Although the institution has maintained a passive approach to crypto regulation, its new management is now an active participant and can have a voice in many important issues. The new management proposed changes to the Brazilian Congress’ cryptocurrency bill, which was due to be passed by Congress prior to the Oct. 30 general election.
The organization published a document on Oct. 13, which provides guidance for identifying tokens that could be considered securities within the Brazilian market. In the absence of a proper cryptocurrency law, this document would help market participants.
The institution issued a subpoena Sept. 30 at Mercado, one of the nation’s most important local exchanges, asking for information about its fixed yield investment platform, as well as the customers who took advantage of it.
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