Brazilian President Signs Law Regulating Cryptocurrencies

In Brazil, the country’s Securities and Exchange Commission will determine which “virtual assets” qualify as “securities.
Brazilian President Jair Bolsonaro signed Law, which introduces “directions for the regulation of virtual asset services.” By “virtual asset” the law means “a digital representation of value that can be traded or transferred electronically, and can also be used to make payments or be the subject of investments.
The law comes into force in 180 days and states that the Brazilian Securities and Exchange Commission will determine which cryptocurrencies qualify as “securities” and will require that their issuance, circulation and other actions be subject to securities legislation.
Cryptocurrencies that would not be defined as securities would be supervised by a special government body. It is planned that the Brazilian government will decide what this agency will be, with the possibility of creating a special body for this purpose.
Companies that operate in the cryptosphere are allowed to register in Brazil and open offices: in order to do so, they must provide at least one service from the following list

Perform exchanges of virtual assets for Brazilian reals or foreign currency;
conduct exchanges between virtual assets;
to carry out transfers of virtual assets;
provide custody or management services for virtual assets or instruments that allow you to have control over virtual assets;
participate in or provide financial services if they relate to the issuance or sale of virtual assets.

As a reminder, the Bank for International Settlements previously introduced standards cryptocurrency banking activities.

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