Brazil’s Presidential Candidate Backs Central Bank As Regulator for Crypto

Luis Inacio Lula Da Silva, Brazil’s most popular presidential candidate in the first voting round has revealed his position regarding crypto regulations in the country.

Lula maintains that crypto assets have grown in recent times and have drawn the attention of the authorities. The presidential aspirant declared his support for the Central Bank of Brazil as the body responsible for designing cryptocurrency regulations for the country due to its autonomous powers.

According to Lula, this framework should check sharp practices that include money laundering, currency evasion, and fraudulent trading using cryptocurrency. In order to achieve this, regulators have to define market norms and establish norms in accordance with international standards.

Furthermore, he called for close supervision of the cryptocurrency market to prevent a negative impact on the nation’s economy.

Prior to now, Lula has been an advocate for the issuance of a common currency dubbed “SUR” for Latin American countries. He has said he’ll promote this if elected president to break Brazil’s dependence on the international dollar market.

Brazil works on its crypto laws

Brazil through its CVM (Brazil’s Securities and Exchange Commission) is seeking to make amendments to the nation’s legal framework as it concerns regulations in the crypto space.

The amendment became necessary after the current bill failed to properly define tokens. Should the current bill be passed into law as it is, the regulator will have a difficult time overseeing the space as it’s unclear whether tokens are securities or not.

Also, Brazil introduced stiffer punishment as part of its plans to prevent investors from scams and schemes as the country has witnessed a community-wide adoption of cryptocurrencies.

It is proposing a three to ten-year jail time including other fines as determined by the judge for crimes relating to digital currencies.

Meanwhile, Brazil via blockchain-powered projects is working towards changing the nation’s financial landscape. Itaú Unibanco, Brazil’s largest bank recently submitted a proposal for a DeFi liquidity pool which will be advanced through its innovation lab.

Recall that last year it was rumored that Brazil was adopting Bitcoin as its legal tender. Meanwhile, it already had plans of bringing its “Bitcoin law” by July this year.