CVM is requesting that specific modifications be made to the bill regarding cryptocurrency. This directive was issued by the Brazilian securities watchdog. They want to close a loophole that prevents tokens, such as tokenized carbon credits and tokenized physical goods from being classified as securities in the current bill.
Brazilian CVM Presses For Changes In Current Cryptocurrency Law
CVM in Brazil, a securities watchdog is pushing for amendments to the cryptocurrency bill. This will make it clear how virtual assets are treated in Brazil. This new directive is a departure from previous proposals.
CVM asks for specific changes in the text to permit certain digital assets like carbon credits, court orders and receivables, to be structured using a Blockchain but not qualify as virtual assets as per the definition in the current cryptocurrency bill.
These new details are not being corrected and, according to law proponents, it would not be possible for this correction. Deputy Expedito netto, who was the bill’s rapporteur, said that he wasn’t aware of them but it was impossible to alter the text.
Senator Carlos Portinho thinks it better to begin a new cryptocurrency law from scratch. He said:
The industry had already revised some of its concepts so it decided to just sit back and do the same thing again. It is necessary to practice participatory democracy. This project and others like it must be debated in order to reach an updated text with greater legal certainty. Few will be pleased if it’s approved the way it is.
Other Solutions
The current cryptocurrency bill may be unsalvageable due to the differences between the proposal makers and representatives from the Brazilian CVM. But, it is possible that this bill could be saved if lawmakers are able to put in the necessary effort.
The current version of the bill could be approved by Congress. This would allow the executive to veto some portions of it and change and define by decree certain details that have been criticised.
While the last discussion on the cryptocurrency bill was set for August, Congress has its sights set on the October general elections. Before the September elections, this is the final period that this project will be available for discussion.
How do you feel about the Brazilian CVM’s thoughts on the still-to-be approved cryptocurrency bill? Comment below.
Images Credits: Shutterstock, Pixabay, Wiki Commons, T. Schneider, Shutterstock.com
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.