Brazil’s Central Bank President Acknowledges Demand for Crypto Regulations

Divya  |  Aug 21, 2021

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.

Brazil’s Central Bank President Hints at Crypto Regulations

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. 

“The financial market is changing so much that it’s all becoming data. We need to reshape the world of regulation,” he said.

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.

“Brazilian regulators are recognizing the maturation of the crypto market and understanding that it is important to offer regulated products to investors looking forward to exploring these new asset classes,” Fernando Carvalho, CEO of QR Capital told a media outlet last month.

Need for Regulations Heightened by Crypto Money Laundering

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.

 

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