Post by account_disabled on Feb 27, 2024 9:37:27 GMT
But the absence of an indication, at least such as the statement of one or more principles, denotes that the legislator — and a large part of the market — either ignores or does not want rules to be created for the protection of investments in cryptoassets, worrying only about their custody, as if service providers were payment institutions. There is no sign that regulation will seek to mitigate the risks that are addressed by typical securities market standards, relating to intermediaries, custodians, bookkeepers, managers, fiduciary administrators, analysts, consultants and investment advisors. All these activities are already carried out today in relation to virtual assets and there is no clarity about what their new reality will be like.
Finally asset segregation is a controversial point that deserves greater detail, which is why I will detail the topic in another text in due course. Concerns After being processed for years, the standard provides for a transition period of at least 180 days, which means that it will take a significant amount of time for its infra-legal regulations to be created. After that, there may still be a new transition period expected (which is common to allow market agents to adapt) and, finally, when companies request authorization, this process Chinese Europe Phone Number List could take around a year — currently optimistic deadline for obtaining payment institution authorization. In other words, the law will not produce any relevant practical effect in the reality of the Brazilian crypto market for something between 12 months (optimistic scenario), 18 months (conservative scenario) and 24 months pessimistic scenario.
And, during this period, which can be considered an eternity in the crypto market, companies may continue to have weak internal controls, freely dispose of their customers' resources, fail to set up headquarters in Brazil, turn a blind eye to market manipulation, misuse privileged information and money laundering. Finally, despite the creation of a new criminal type (an unnecessary "fraud 4.0"), the law does not bring anything new in terms of repressing financial pyramids and offers of securities without prior authorization. Scams will continue to exist and companies that wish to issue virtual assets that are securities will not have a cheaper and more flexible regime, having to carry out these issues outside of Brazil or take the risk of not being “caught” by the Brazilian regulator. In short, the law is a mere scarecrow, despite being minimally better than nothing, due to its symbolic function.
Finally asset segregation is a controversial point that deserves greater detail, which is why I will detail the topic in another text in due course. Concerns After being processed for years, the standard provides for a transition period of at least 180 days, which means that it will take a significant amount of time for its infra-legal regulations to be created. After that, there may still be a new transition period expected (which is common to allow market agents to adapt) and, finally, when companies request authorization, this process Chinese Europe Phone Number List could take around a year — currently optimistic deadline for obtaining payment institution authorization. In other words, the law will not produce any relevant practical effect in the reality of the Brazilian crypto market for something between 12 months (optimistic scenario), 18 months (conservative scenario) and 24 months pessimistic scenario.
And, during this period, which can be considered an eternity in the crypto market, companies may continue to have weak internal controls, freely dispose of their customers' resources, fail to set up headquarters in Brazil, turn a blind eye to market manipulation, misuse privileged information and money laundering. Finally, despite the creation of a new criminal type (an unnecessary "fraud 4.0"), the law does not bring anything new in terms of repressing financial pyramids and offers of securities without prior authorization. Scams will continue to exist and companies that wish to issue virtual assets that are securities will not have a cheaper and more flexible regime, having to carry out these issues outside of Brazil or take the risk of not being “caught” by the Brazilian regulator. In short, the law is a mere scarecrow, despite being minimally better than nothing, due to its symbolic function.