Central Bank of Brazil Opens Public Consultation on Virtual Assets Service Provider Rulemaking

Central Bank of Brazil Opens Public Consultation on Virtual Asset Service Providers (VASP) Rulemaking

The Central Bank of Brazil opened a new public consultation to obtain feedback for regulating the operations of virtual assets service providers (VASPs) in the country. The bank organized a questionnaire of 38 questions divided into different themes that can be partially, or fully answered until January 31, 2024.

Central Bank of Brazil Seeks Input on VASP Regulation

The Central Bank of Brazil is preparing to finally issue rules for Virtual Assets Service Providers (VASPs) operating in the country. The institution opened a public consultation seeking input from market participants and individuals to prepare the rules VASPs would have to follow, according to the faculties it received since the approval and sanction of the cryptocurrency assets law in December 2023.

The bank introduced a 38-item questionnaire that can be answered totally or partially, indicating the numbers and themes respondents want to address in their statements.

Each question is part of a broader subject of the public consultation, including areas such as asset segregation and risk management, activities developed and virtual assets traded, hiring essential services, governance and conduct rules, cyber security, providing information and protecting customers, transition rules, and general manifestations.

The issue of asset segregation has significance, given that it was initially proposed to be part of the final text of the approved cryptocurrency assets law, but was finally left out due to the limitations it would impose on the operations that VASPs could conduct. Tax exemptions for mining projects leveraging renewable energy were also left out of the final text and might be affected by these rules.

The public consultation process will be open until January 31, 2024, and all answers will be publicly available for review on the bank’s page.

What do you think about the public consultation of the Central Bank of Brazil to regulate the operation of VASPs? Tell us in the comments section below.

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