The Brazilian Federal Government published, on June 14, 2023, Decree No. 11,563, which regulates Law No. 14,478, of December 21, 2022, known as the legal framework for virtual assets in Brazil, defining the Central Bank of Brazil (BCB) as the authority responsible for supervising the activities of providers of virtual asset services in the country.
According to Decree No. 11,563, BCB will take the following roles: (i) to regulate the provision of virtual asset services, observing the guidelines of Law No. 14,478; (ii) to regulate, authorize, and supervise virtual asset service providers; and (iii) to deliberate upon other matters established by Law No. 14,478.
Decree No. 11,563 also reinforces that the Brazilian Securities and Exchange Commission (CVM) remains with its attributions of supervising assets that represent securities, not having its competencies changed, as already provided for by Law No. 14,478.
As the next steps, the expectation is that BCB will edit the rules that will regulate specific aspects of Law No. 14,478, which, hopefully, will be preceded by a public consultation to receive suggestions and comments from the market.
Decree No. 11,563 comes into effect on June 20, 2023, the same day as Law No. 14,478.
