On Nov. 1, The Brazilian Securities Regulator, CVM, announced that it might create a new superintendence to deal with crypto-related market regulation. João Pedro Nascimento, president of the organization, said that the regulator is currently suffering from a lack of personnel that makes it challenging to give the attention needed to the growing cryptocurrency market.
Brazilian Securities Regulator CVM to Create Separate Crypto Regulatory Institution
The growth of the cryptocurrency market is causing troubles for some regulatory agencies around the world that lack the manpower needed to reach all actors in the market. The Brazilian Securities Regulator, CVM, announced on Nov. 1 that it will create a crypto-specific superintendence with the objective of exercising the needed oversight over all participants in the market.
Joao Pedro Nascimento, president of the CVM, stated that one of the causes of this decision is the lack of manpower the organization is experiencing right now, which affects the attention that it can give to growing cryptocurrency markets. In this sense, Nascimento explained that they were in talks to execute the required procedures to employ more personnel in 2023. He stated:
The CVM cannot survive without personnel, the market continues to grow. In a little while, we will have to create a superintendence to deal with crypto assets.
Nascimento also explained that he hopes to have early conversations with the economic team of President-elect Luis Inacio Lula Da Silva, to negotiate on issues that the institution was already negotiating with the current government.
A New, More Active Institution
While the institution maintained a passive stance when it comes to cryptocurrency regulation, the new management is an active player, having a say in several important crypto-related issues. One of the first actions of this new management was to propose changes in the cryptocurrency bill that was set to be approved by the Brazilian Congress before the general elections that happened on Oct. 30.
On Oct. 13 the organization issued a document that offers guidance to identify tokens that can be considered securities in the scope of the Brazilian market. This would be useful to guide market participants in the absence of proper cryptocurrency law.
The institution sent a subpoena on Sept. 30 to Mercado Bitcoin, one of the most significant local exchanges in the country, to request information about the fixed yield investment offering the company offers in its platform since 2020, and about the customers that have taken advantage of these products.