The Brazilian financial markets regulator, known as the CVM, is set to release a decree in the coming days that will provide government-appointed bodies with enhanced powers to regulate the crypto sector.
The CVM President, João Pedro Nascimento, confirmed that the decree will cover all crypto assets that are classified as securities, and will likely grant the CVM the power to determine which tokens are securities.
Nascimento stressed that crypto regulation had been well received by the sector, and that the CVM was also working on a decentralized finance (DeFi) project called Open Capital Market.
The project aims to bring decentralized finance to the capital market, starting with the transfer of custody of funds, and is set to roll out sometime this year.
The CVM’s regulations have been designed to promote the development of the crypto space and avoid making rules that could stifle the sector.
However, last month, the Central Bank announced that it was also planning to tighten crypto regulations, with its central bank digital currency project, the digital real, aimed at helping small businesses grow at a faster rate.
