Roberto Campos Neto, the governor of the Brazilian central bank, defended the suggestion of keeping a moderate hand when it comes to regulating cryptocurrencies in the country.
Campos Neto asserted that while regulation was undoubtedly essential, it should be done in a way that it does not put a stop to innovation.
He went on to say that his goal was to connect the digital world with the well-regulated one.
No harsh approach
Central banks of a number of countries all over the world have begun to establish their respective stances in terms of crypto regulation as well as central bank digital currencies (CBDCs).
There was a debate event focused on the regulation of cryptocurrencies, not just in Brazil, but in rest of the world as well.
The Central Bank of Brazil’s president, Roberto Campos Neto, took this opportunity to share his thoughts regarding crypto regulation.
According to the president, these instruments should be regulated in such a manner that it allows them to grow and does not become a hurdle in terms of innovation.
He asserted that generally central bankers favor a heavy hand for crypto regulation and while he understands this, he does not share the same opinion.
He said that they could not ignore the technological advances that would happen with this. Therefore, he said that he wanted to integrate the regulatory and digital world differently than other central banks.
Joao Pedro Nascimento, the Brazilian Securities and Values Commission (CVM)’s president, also stated that his ideas were similar to the president of the central bank.
He stated that regulation should not be such that it stifles growth in the crypto market. He said that they would not ban a revolution.
Previously, Nascimento had stated that as crypto technology had evolved, it was natural that there was a demand for its regulation.
An advisory opinion has been proposed by the CVM regarding cryptocurrencies and their investments. It is currently under review and could be used until they sanction a crypto-centric law.
Brazil has quite an extensive and advanced legislative process when it comes to getting a bill approved.
A crypto-centric bill aimed at providing clarity to virtual asset service providers and crypto markets is currently awaiting discussion in September in the deputy chamber.
However, there is a possibility that this discussion may be delayed once more, since the general ballot for electing members of the congress, along with the president and vice-president, would be so near.
But, it is a given that crypto markets need to be regulated quickly in Brazil, as the popularity of these digital currencies is on the rise.
In more recent news, a Brazilian investment platform called Bluebenx recently suspended withdrawals for its clients, which has given rise to concerns about the authenticity of the company.
Other countries are also working on developing crypto regulations, as the market continues to grow and needs to be monitored in order to ensure consumer protection.