Brazilian central bank backs crypto regulation

The president of the Central Bank of Brazil, Roberto Campos Neto, spoke in favour of creating a regulatory framework for the crypto industry. The regulator is discussing paths to this with the Securities and Exchange Commission (CVM).

“The financial market is changing so much that all this is becoming data. We need to change the world of regulation,” the head of the central bank said during an online conference.

According to QR Capital CEO Fernando Carvalho, Brazilian regulators recognise the growing maturity of the crypto market and understand that investors value regulated products.

In March 2021, the company led by him received approval from CVM to launch a Bitcoin ETF. In July the regulator registered a similar product from QR Capital based on Ethereum.

Brazil became the second country in the world after Canada to approve cryptocurrency exchange-traded funds.

Campos Neto, noting the importance of aligning norms and rules with innovation, stressed:

“It will be impossible to set rules for financial operations without understanding data regulation.”

Earlier, in July, CVM head candidate Otto Eduardo Fonseca de Albuquerque Lobo said the agency should pay special attention to cryptocurrency operations not covered by the current regulatory regime.

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