Brazil’s crypto trading regulations are coming, regulators’ eye clarity

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It seems like only yesterday that Brazil’s regulator stopped local investment funds from buying cryptocurrencies. However, as time went on and cryptocurrencies became more “mainstream”, Brazilian authorities began to see crypto in a renewed light. And the latest development is coming Brazilian Crypto business guidelines; Brazilian regulations have been put in place to make the entire ecosystem more transparent.

The regulator is working with Brazil’s Ministry of Economy, and CVM is under new management.

Brazil’s regulator is working alongside the country’s Ministry of Economy.

It came shortly after the CVM was placed under new management – the former boss led those who did not want to be part of the commission to be happy. In addition, members of the Brazilian parliament have introduced additional pro-trade bills that are currently awaiting approval from the Brazilian government.

“Crypto assets were one of the key issues in the meeting” – CVM

CVM announced on its official Twitter page that crypto assets are one of the key features being discussed by the country’s governing bodies. The goal now is to create new policies where the crypto and fiat economies work better together and have no problems.

Brazil’s SEC has previously been apprehensive about regulating the Crypto space.

The latest news out of Brazil is surprising to say the least, as the CVM has historically been opposed to regulating the crypto space. The main issue behind it is the nature of cryptocurrencies. A bill introduced earlier this year would not consider tokens as securities or digital assets, and would not fall under the purview of the SEC. However, soon a new board was appointed and the goal was to make cryptos more relevant to the country’s financial services.

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In the year According to 2021 reports, more than 7.8% of Brazilians hold currencies. Between January and November of last year, citizens traded $11.4 billion worth of stablecoins, nearly three times the amount traded in 2020.

USDT (Teter) is Brazil’s favorite stablecoin to reach $9.7 billion by 2021. Other stablecoins popular in the region are DAI, TrueUSD and USDC.

What are the views of Crypto experts?

“The cryptocurrency market should be regulated” – was the main mantra of most crypto experts. The idea has always been there, but these feelings of control began to resonate again in the summer of 2022 after the crypto winter. Here are five reasons why it is better to control the crypto market.

  1. Prevention of market manipulation and protection of investors: Crypto investors have learned the hard way about the volatility of the crypto market. Not only did they suffer huge losses over the winter, but they also saw top crypto lending firms like Celsius and Voyager Capital shut down. What didn’t help was that the assets were not controlled. Yes, there are crypto taxes, but there is no action yet to protect the interests of customers.
  2. Only some cryptocurrencies should be available on the market: More than 100 new cryptocurrencies are introduced every day. Several YouTubers have demonstrated the “cut, copy, paste” process it takes to generate your own crypto within a couple of hours. Thus, many crypto assets in the market are worthless. Only those crypto assets that show real potential for the ecosystem need to be pushed.
  3. Common cyber security risks in the crypto-sphere include: Decentralization is a double-edged sword. Although it forms a trustless ecosystem, it is also vulnerable to hacking. Solana has been hacked several times before. The recent Axie Infinity hack wiped out over 600 million from the ecosystem. Regulations blockchain projects must comply with can set security centers.
  4. money laundering; Money laundering is the biggest pain point when it comes to cryptocurrencies. Tornado Cash has been banned for this reason. Many believe that introducing regulations will introduce standards in this volatile market.


Brazil’s first move to regulate crypto is a step we applaud. Most crypto experts have been calling for more regulations for a long time, which is one of the many positive steps in this direction. Will other countries follow a similar approach? We don’t know. But it’s best to keep an eye on these developments for now.

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