Brazil Senate to Hold Public Hearing on Cryptocurrency Regulation

The Brazilian Senate is set to hold a public hearing on cryptocurrency regulation, following a recent push by lawmakers to update the nation's legislation. The hearing, which will be hosted by the Economic Affairs Committee of the upper house of parliament, aims to address the growing importance of virtual assets in the country's digital economy.

Senator Soraya Thronicke of the Podemos Party introduced a private member’s bill that seeks to regulate how virtual assets service providers (VASPs) issue coins, hold tokens, and process settlements. This move has sparked a call for a public hearing by Senator Rogerio Carvalho, the leader of the Partido dos Trabalhadores (PT) party in the Senate. Carvalho emphasized the need for lawmakers to consult with experts and representatives from both the public and private sectors before legislating on the matter.

Carvalho highlighted the rapid growth of the virtual assets market in Brazil, stating that a public hearing is essential to ensure legal security, transparency, and protection for customers and investors. He also noted that cryptocurrency is playing an increasingly relevant role in the digital economy, making it crucial for the Senate to conduct a thorough analysis of the implications of Thronicke’s bill.

The Senate has not yet set a date for the hearing but has indicated that representatives from four institutions will be invited to participate. These include two regulators, the Central Bank of Brazil (BCB) and the Securities and Exchange Commission (CVM), as well as two industry groups: the Brazilian Association of Cryptoeconomics (ABCripto) and the Brazilian Financial and Capital Markets Association (Anbima).

Thronicke has been a vocal advocate for crypto regulation in the Brazilian Senate. In August 2020, she proposed a bill that would place the BCB and the CVM in charge of overseeing the Brazilian crypto markets. Her latest bill aims to require all crypto exchanges and brokerages operating in Brazil, including those based overseas, to obtain operating permits. This legislation would also mandate that exchanges keep their own coins and fiat separate from those of their customers, thereby enhancing transparency and security in the crypto sector.

The public hearing is expected to provide a platform for stakeholders to discuss the regulatory framework for cryptocurrencies in Brazil, ensuring that the country's legislation keeps pace with the evolving digital economy. The involvement of key regulators and industry groups will be instrumental in shaping policies that balance innovation with consumer protection and market stability.