Law 14.478/2022: Legal Framework for Crypto Assets in Brazil

Law 14,478/2022 establishes the fundamental guidelines for the cryptoassets market in Brazil. I feel that this legislation has finally brought some clarity to the sector, although I still see important gaps.

This regulation defines virtual assets as digital representations of value that are electronically tradable and positions the Central Bank as the main regulator. In my view, centralizing control in a traditional institution may limit the innovation that characterizes this market.

I observe with concern that companies need to obtain government authorization to operate. This may create barriers to entry for new players and favor large corporations that already dominate the market.

The rules against money laundering are necessary, but I fear they may be used as a pretext for excessive surveillance of ordinary users' transactions.

It is interesting to note that digital currencies issued by governments are excluded from this framework. Is it a coincidence or a way to privilege the future Digital Real?

The specific regulation still depends on complementary regulations. In the meantime, we operate in a regulatory limbo that benefits neither companies nor users.

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