In December 2022, Brazil published Law No. 14,478, defined as the Legal Framework for Virtual Assets in Brazil (“Cryptoassets Act”). The new text will enter into force on 20 June 2023.
The Cryptoassets Act deals with guidelines for providing services with virtual assets and for regulating providers of these services. The Act defines virtual assets as a digital representation of value that can be traded or transferred electronically and used for making payments or for investment purposes. It also provides for (i) prior authorisation for the provision of services; (ii) the guiding principles of the activity; (iii) the definition of virtual asset service provider (VASP) services; and (iv) setting new criminal responsibilities in the intermediation of operations involving fraud, in addition to increasing penalties if the practice occurs within the scope of regulations that combat money laundering and organised crime. To read entire text click link.