In a recent online event, Brazil’s central bank president Roberto Campos Neto endorsed local regulations for crypto alongside instant payment platforms. He said Brazilian policymakers are worried about crypto’s growth as an investment instrument rather than a payments system.
Speaking at an event organized by the Council of the Americas, Campos Neto recognized that digital assets should be monitored in a new environment alongside instant payment platforms.
Campos Neto is considered to be a strong proponent of cryptocurrencies. Ever since his appointment in 2019, he encouraged technology-led advances in Brazil’s financial sector. He is also overseeing the country’s ongoing efforts to develop a digital version of its currency.
Digital assets command significant demand in Brazil, so much so that regulators have licensed several Bitcoin ETFs in the last few months. But authorities are realizing the need for oversight, especially in the light of rising criminal activity.
Lately, Brazilian authorities are pursuing crypto money-laundering operations that are said to be expanding rapidly across the country.
Last week, the Brazilian Federal Police deployed units to several locations to bust crypto-related money laundering schemes. The effort was part of Operation Compliance, which was started in 2018 to investigate and identify crimes related to crypto money laundering.
Just last month, the Brazilian police confiscated $33 million from a probe that involved some crypto exchanges and shell companies. Also, at the beginning of this month, the Brazilian Federal Court ordered the first sale of seized Bitcoins to repay the victims of a fraudulent organization called TraderGroup.