The new directive from Brazil’s securities watchdog, CVM, now requires specific changes to the cryptocurrency bill pending debate in Congress. The agency wants to fix a loophole in the current document in which some tokens will not be considered securities, including tokenized physical goods and carbon credits.
The Brazilian CVM is pushing for changes to the current account of cryptocurrencies
Brazil’s securities regulator, CVM, is pushing for changes to the cryptocurrency bill that would clarify how virtual assets will be treated in the country. The agency’s new directive has taken an active stance, unlike the previous administration, which had not made any proposals for the specific bill.
Specifically, the CVM is requesting a change to the text that would allow certain digital assets such as carbon credits, court orders, and claims to be structured on a blockchain, but not qualify as virtual assets under the current cryptocurrency account definition.
However, these new details have not been fixed and, according to the supporters of the law, it would not be possible to include this new correction. Deputy Expedito Netto, the drafter of the bill, told local media that he did not know these details, but that it was not possible to change the current text of the bill.
Senator Carlos Portinho believes it would be better to start a new cryptocurrency bill from scratch. He stated:
The industry itself revised some concepts, so it preferred to sit down and start from scratch. We must practice participatory democracy. Plans like this need to be discussed in order to arrive at a more up-to-date text with greater legal certainty. If passed as it is today, it will please few.
These differences between the bill’s proponents and representatives of the Brazilian CVM may render the current cryptocurrency bill unsalvageable. However, there is a chance that the time and effort that lawmakers have invested in this bill will not go to waste.
That possibility looks at the current iteration of the bill being passed by Congress and the executive branch vetoing parts of it, changing and decreeing some of the criticized details.
The final debate on the cryptocurrency bill was scheduled to take place in August, but Congress is focused on the next general election in October. The last period in which this project can be debated before the election closes in September.
What do you think of the Brazilian CVM’s thoughts on the yet-to-be-passed cryptocurrency bill? Tell us in the comments section below.
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