And at the end of the blackout of the current Brazilian government, the law that regulates cryptocurrencies in Brazil was sanctioned.. And so Law 14,478/2022 came into force, which regulates the provision of virtual asset services in the country, the famous cryptocurrencies (Bitcoin, Ethereum, etc.)
But what was defined?
This law created a type of embezzlement with a prison sentence of four to eight years for anyone who organizes, manages, offers or distributes portfolios or mediates operations on virtual assets, securities or any financial asset in order to obtain an illegal advantage, induce or keep someone in error, by artifice, ruse or any other fraudulent means.
Rafael Franco, an entrepreneur who works in the technology market, says that It was also defined that companies operating in the sector must keep records of all transactions to pass information to the organization to combat organized crime and money laundering. That is, those who do not keep the history of transactions will break the law. This is how part of the text of the law declares:
“Companies in the segment should also always observe the following guidelines:”
I – Free initiative and free competition;
II – Good governance practices, transparency in operations and risk-based approach;
III – Security of information and protection of personal data;
IV – Protection and defense of consumers and users;
V – Protection of popular savings;
VI – Solidity and efficiency of operations and
VII – Prevention of money laundering and financing of terrorism and the proliferation of weapons of mass destruction, in line with international standards.
Raphael also explains that the law even defined who it considers to be companies that provide digital asset services and the proper framework for offering services of exchange, transfer, custody or administration of assets. “Everybody has to fit in“, it states.
Besides, the law defines that the Consumer Defense Code applies in situations that it also defines for this type of service. The law enters into force in 180 days and that is the period that companies in the sector have, from now on, to adapt to what has been determined.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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