Regulation
Brazil’s Central Bank Delays Implementation of Cryptocurrency Regulation
Brazil’s Central Bank has decided to gradually introduce regulation of crypto-assets and virtual asset service providers, with proposals expected later this year. This follows a delay from previous projections for completing the regulatory framework by mid-2024, as stated by Otavio Damaso, the bank’s director of regulation.
The Central Bank plans to divide the regulatory process into phases. After concluding a public consultation in January, a new consultation is planned for the second half of the year. The aim is to provide a robust regulatory framework using feedback from the initial response in areas such as asset segregation.
Meanwhile, in India, the Securities and Exchange Board of India (SEBI). proposed that more regulators oversee crypto activities. SEBI proposes to regulate cryptocurrencies and ICOs, with the Reserve Bank of India (RBI) managing tokens backed by fiat currencies.
Additionally, IRDAI and PFRDA would manage virtual assets related to insurance and pensions. This is in contrast to the cautious stance of the RBI, which supports the ban on stablecoins due to concerns over fiscal stability and tax evasion.