National crypto exchanges race against time to reverse changes in PL in the Chamber

National cryptocurrency exchanges are running out of time to try to reverse, together with parliamentarians in the Chamber of Deputies, the changes proposed by Deputy Expedito Netto (PSD-RO), rapporteur of the bill that aims to create a regulatory framework for the sector, they said. three sources aware of the matter to the InfoMoney CoinDesk. The House goes into recess at the end of next week.

There was an expectation that the PL would be voted on this week, but the agenda was blocked by the vote on presidential vetoes. According to one of the sources heard by the report, there is still an expectation that the matter will be voted on by tomorrow – this possibility, however, is getting smaller.

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Brazilian companies try to maintain mainly two highlights of the bill made by the Senate. One of them concerns the requirement for crypto exchanges to segregate their own equity from those held by clients, a measure identified as essential to prevent users from being affected by the possible bankruptcy of a brokerage.

The other highlight, seen as a priority, is linked to the so-called transition rule. The text that went down to the Chamber provided for a grace period of 180 days for exchanges to adapt to the new rules, provided that they already had, on the date of enactment of the Law, an active CNPJ in Brazil, in addition to reporting systems to the Federal Revenue and to the Financial Activities Control Council (Coaf). The PL’s rapporteur in the House, however, went on to defend the removal of the section as he considered it unfair to exchanges that do not yet operate in the country.

In Netto’s opinion, all companies in the sector will have 180 days to adapt to the regulatory framework, regardless of their legal situation in the country at the time the law comes into force. The change benefits foreign companies that have not yet shown interest in entering the Brazilian market, as well as exchanges such as Binance, which has been attracting customers in the country since at least 2020, when it started accepting deposits in reais, but to this day does not have a local presence or issue. reports to national authorities.

“ABCripto understands that it is necessary to approve the Bill as soon as possible, including the highlights that are related to the maintenance of articles related to the transition rule and asset segregation, such as, for example, highlight 7 and highlight 9”, he told the company. report Bernardo Sur, director of the Brazilian Association of Cryptoeconomy (ABCripto), which brings together 11 companies in the sector, including Mercado Bitcoin, Foxbit and Bitso.

The Association started to build, still in 2018, a self-regulation booklet that contains recommendations for asset segregation and reporting to Revenue and Coaf. The abandonment of the measures by the PL is seen as a defeat for national exchanges.

“I understand that it is necessary to recover the understanding of the points that were intensely discussed, adequately consensual and publicly defended by ABCripto. The points taken from the initial proposal are important measures for the security of the Brazilian cryptoeconomy at the time of its construction and serve as an important measure for consumer protection”, comments Renata Mancini, Head of Compilance and Risk at NovaDAX and President of ABCripto.

Bet on the Central Bank

If the two highlights are removed from the final text of the regulatory framework, Brazilian companies are betting on counting on the help of the Central Bank to reincorporate them in the regulation definition phase. The BC should be appointed as the body responsible for supervising crypto companies.

“The bill is just a first step in the regulation of virtual assets, but the Central Bank should have a lot of flexibility to regulate the sector”, says lawyer Rafael Viana, from Velloza Advogados. “Where virtual assets have the characteristics of securities, it is possible that the CVM will also have to fulfill some role in updating its rules, which will probably be another consequence of the approval of the PL”, he points out.

The solution, however, can be risky given the jurisprudential understanding on the matter. According to the lawyer and professor at Ibmec and Insper, Isac Costa, most jurists see the addition of this type of requirement as an infralegal norm as inappropriate. For him, the attempt to reverse the situation after the approval of the regulatory framework can lead to a legal battle. “It can last for years, and until then everything remains as it is, with foreign exchanges operating normally,” he says.

In the expert’s view, the lack of equity segregation for cryptocurrency exchanges is problematic. “Our Congress has given in to groups that have no interest in protecting investors’ assets, as they want to freely dispose of the resources they hold,” he says, highlighting the “irony” of a change like this precisely when companies like Celsius and Voyager are suspending withdrawals because invested clients’ funds in risky assets and lost money when the market crashed.

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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