This Thursday (25th), DigiTalks Expo 2022 took place in São Paulo, and the “Blockmaster” stage was the event space dedicated to the crypto assets. Panels ranged from tokenization, volatility survival to regulation in Brazil.
Regarding the last topic, the panel “Legislation – How the regulation of crypto-assets impacts the market” discussed the subject that has been on the agenda in recent months: the Cryptocurrency Bill (4401/21) that is being processed in the Chamber.
O Crypto Times interviewed Karen Duque – Head of Public Policy at bitso – and one of the speakers at the event – to understand the vision of the crypto exchange Mexican on the Bill.
Brazil at the forefront of crypto regulation
For her, Brazil is at the forefront from a regulatory point of view. “We are at the end of the legislative process to approve the regulatory framework, and I see it with excellent eyes”, she says.
Duque comments that Bitso’s mission is to make crypto useful, and it will only be possible after a legality from the point of view regulatory.
She points out that the “cryptoeconomy” activity is not illegal, but it is natural to need state confirmation so that Bitso, and other companies, are safer in expanding adoption.
“The bill is the tip of the iceberg, it’s just the first step we need to take so we can have a framework that sets high standards from a customer awareness perspective, anti-money laundering practices, and anti-funding practices. of terrorism”, he says.
As he says, these points are very important for us to advance in terms of the business model, but at the same time they do not stifle innovation.
“[Os pontos expostos na lei] they will not strangle the development of new products or new technologies, but at the same time they will establish minimum standards necessary for us to operate offering security to consumers, and at the same time differentiating who are the companies that are acting under the regulatory umbrella and who is not”, he says.
Negative points in the Bill
For Duque, a negative point was the determination of the points in the transition rule of the Project by Deputy Expedito Netto.
As she explains, it is natural in various regulatory frameworks to grant 180 days of compliance with the law.
“The law says that we have 180 days to adapt to it, but it asks that in two points, we can comply on the day it comes into force. These two points are the transition rule,” he explains.
In the case of the Cryptocurrency Bill, the two points that need to be fulfilled on the day the law comes into force are the need to have a CNPJ in the country and the ability to report suspicious activities to COAF.
“Something that I commented on the panel, which I think is very important, is to do a merit analysis of what motivated these two points. What motivates you to have a CNPJ in Brazil? The local presence.”
Local presence is important so that the regulated and the regulator can dialogue from a conceptual point of view, according to Duque. For her, the motivation of the second point is cooperation with the state for anti-money laundering purposes.
“The merits, from Bitso’s point of view, are unquestionable. What we bring as a weighting is the shape. The regulator creates two non-existent obligations and tells companies to fulfill them on the same day. The way it is being done, it will end up generating a transition rule that can exclude, and not include”, he comments.
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Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
