Central bank in Brazil set to propose cryptocurrency regulation by end of year.

Brazil’s central bank has recently announced a decision to split the regulation process of crypto-assets and virtual asset service providers into phases. This move comes following the enactment of a 2022 law on the subject, which set the stage for further regulation by the central bank.

The completion of this regulatory process was initially projected to be finished by June 2024, as stated by the bank’s director of regulation, Otavio Damaso, during a congressional hearing last year. However, with the decision to divide the process into phases, regulatory proposals are now expected to be released by the end of this year.

In December 2023, the central bank launched a public consultation on the matter, which concluded in January. Now, the bank plans to open a new consultation in the second half of this year to gather further input on the regulation of crypto-assets and virtual asset service providers.

This phased approach to regulation demonstrates the central bank’s commitment to thorough and comprehensive oversight of the crypto industry in Brazil. Stay tuned for more updates on this evolving regulatory landscape in the coming months.