Central Bank of Brazil Projects Finalizing Crypto Market Regulation By 2025

Brazil is getting closer to finalizing regulation regarding virtual asset service providers (VASPs) and their interaction with crypto.

The Central Bank of Brazil is aiming to finalize cryptocurrency market regulations by 2025, according to Nagel Paulino, head of the institution’s regulatory department. This will be done after conducting a second public consultation to hear the opinions of market participants in order to tailor these rules to local needs.

The institution will conduct a second public consultation this semester to help adapt the existing proposals to the Brazilian market. In this sense, Paulino stated: “The Central Bank already had a regulatory design, but the structure was very much based on international references. The local ecosystem of virtual asset service providers has its own particularities.”

While this would conclude the institution’s task regarding VASP rules, several cryptocurrency-linked subjects still need to be fully addressed, including the tokenization of assets, tariff rules, liquidity providers, and most importantly stablecoins. This last item has a special relevance due to the popularity and volume these have reached in the Brazilian cryptocurrency market.

Federal Deputy Aureo Ribeiro, responsible for the current cryptocurrency asset law enacted in Brazil, stated that these consultations will also help create a “regulatory framework that will allow the new market to grow and attract the attention of global investors.”

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