Cryptocurrency Law: What is missing and what changes with Lula?

Law 14,478/2022, known as the Legal Framework for Cryptocurrencies, was passed in December last year (Image: Pixabay/dapple-designers)

A Cryptocurrency Law represents a big step in the regulatory scope for the Brazil. The Tupiniquim country is one of the pioneers in preparing a set of rules to define a specific regulatory environment for this market.

Law 14,478/2022, known as Marco Legal das Cryptocurrencieswas approved in December last year and will come into effect on June 19.

In practice, this means that the measures contained therein will officially come into effect, ending the six-month adaptation period that the sector had, a traditional element in projects of this type.

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What is still missing for the Cryptocurrency Law to be applied?

Isac Costa, a lawyer specialized in cryptocurrencies, comments that the law brought a “vacatio legis” clause, determining that it will only become effective 180 days after its publication. That is why, in practice, it begins to take effect on June 19, 2023.

“However, what does it mean to produce effects? Until that date, the law cannot be applied. After that, its rules can be applied by the Executive and the Judiciary. The problem is that the rules brought by the law are only principled and insufficient”, he comments.

The Legislature asked the President (Chief Executive) to say who will regulate. The president will say who, via decree. Afterwards, this regulator – which, for Costa, will be the Central Bank – will probably carry out public consultations and issue resolutions.

As the professional evaluates, what the law brought was a determination for the Executive branch, in the first place, to issue a decree defining who will detail the infralegal regulation, that is, in resolutions.

This decree is in the oven and will be signed by the President of the Republic at any time. As determined by Crypto Timesthe President of the Executive, Luiz Inacio Lula da Silva, must sign the document next weekduring the event “Cryptorama” promoted by ABCripto.

The decree will bring a second determination: the Central Bank must edit the infralegal regulation, without necessarily setting a deadline for this, says Costa.

“Thus, regardless of the date or publication of a decree by the Lula government, there will only be fully applicable rules on virtual assets in Brazil when the Central Bank issues specific resolutions”, he explains.

What will change with the Cryptocurrency Law?

The Cryptocurrency Law will act in the vein of the industry, through the regulation of brokerages and companies. In addition, Marco Legal seeks to act in investor protection, adding specific provisions in the penal code and in the money laundering law.

In short, for the retail investor, it’s not going to affect much directly. The objective is for the environment to be less undermined by scams and fraud, such as financial pyramids.

Source: Moneytimes

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