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Crypto Legal Framework: BC must regulate the market in 2024!

In June 2023, the Crypto Legal Framework came into force, a crucial – and long-awaited – stage in the cryptomarket regulatory process that began in 2022 and which is also eagerly followed by the asset tokenization sector.

Also known as the Cryptocurrency Law, the milestone is actually the official establishment of all norms, limits and self-management and protection mechanisms approved in the law sanctioned for digital currencies at the end of 2022.

The period of 180 days was foreseen for cryptoactive companies to prepare for this new scenario that will bring:

  • Legal security for people to invest and the exchanges themselves to operate with the credibility that regulation will provide;
  • The legal framework for legal agents to work with classifications of crimes involving digital assets.

Another important step has been taken, but to what extent does it affect the business token? Will tokenized asset projects benefit in any way?

BLOCKBR, a company that develops tokenization infrastructure, will talk about the Marco Civil Cripto and the entire market and government movement

WHAT IS THE CRYPTO LEGAL FRAMEWORK

Marco Cripto can be understood as the set of regulatory and supervisory actions created for the cryptocurrency market, which has been growing exponentially and must be understood by investors as reliable.

The Cryptocurrency Law that provides for these actions was sanctioned at the end of 2022 and the changes began to come into effect in June 2023. However, the regulation of digital currencies will only be complete after infralegal regulation.

This is the work of the Central Bank – responsible for supervising the performance of companies in the sector – to formalize the operating rules based on a public consultation, as is already the case in regulations in other sectors.

BACEN’s forecast is that this stage will be completed by the end of 2023 and that crypto regulation will be fully implemented in the 1st half of 2024.

Do you know what tokenization infrastructure is and how it is fundamental for business with transactional tokens? Discover BLOCKCBR’s differences!

THE IMPORTANCE OF MARKET REGULATION

RECOGNITION OF CRYPTOASSETS

The bodies of the monetary system now recognize the legality of cryptoactives, a decision that brings several benefits such as increased investor confidence in exchanges, business volume and internal and external investments in the sector.

COMPANY REGULATION

Cryptocurrency brokers are obliged to comply with requirements that will be established in infra-legal regulations to provide transparency to those operating in the sector, aiming to strengthen good practices in transactions with crypto assets and combat pyramids and promises of unrealistic gains.

CUSTOMER AND TRANSACTION SUPERVISION

Companies will be required to implement KYC (Know Your Customer) and KYT (Know Your Transaction) practices to prevent financial crimes. The largest tokenizing companies on the market, such as BLOCKBR, already use these protocols in business governance.

FIGHTING CRIMES WITH CRYPTOASSETS

This is the most sensitive aspect in the cryptocurrency market: fraud and illicit activities with digital currencies, such as the FTX scandal in 2022, which are not related to flaws in blockchain technology, but to criminal practices by people and companies.

Despite being just 0.24% of the volume traded in the same year, a crime harms millions of people and puts trust in question. The legislation defines clear obligations for companies and customers to provide transparency to the market.

WHAT ABOUT TOKENIZATION REGULATION?

The crypto legal framework does not cover transactional tokens, only cryptocurrencies. But is this bad for the tokenization market? Certainly not.

And we can say that the crypto regulatory framework brings direct and important benefits to investment and business tokens. See some.

STRUCTURED AND NON-SPECULATIVE BUSINESS MODEL

One of the main reasons for the Cryptocurrencies Law is the fact that they are risky assets exposed to speculative attacks, something that brings a lot of distrust to those who want to invest. On the other hand, tokens are essentially a business offering model.

Tokenizing means transacting assets, rights and projects that belong to companies and people and are only tokenized after fiscal and legal regularity studies, carried out by the asset tokenizing company.

This is one of the stages of the tokenization infrastructure, a complex work from technical feasibility analysis to automated management through smart contracts, which is successfully developed at BLOCKBR.

TOKENIZATION REGULATION

TOKENIZATION MARKET MATURITY

Tokenizing assets is an increasingly common and diverse operation – for example, tokenizing real estate, tokens for company receivables or court orders, among a series of other possibilities.

NFTs were essential to give visibility to this technology which, over time, has shown that it can boost niches regardless of the size of the company or its products and services.

Brazil is among the leaders of this transformation. It is estimated that tokenization will take a leap in Brazil starting in 2023. Therefore, the sector will be mature enough to absorb the benefits of the crypto framework, even if indirectly.

Therefore, it is safe to imagine that the regulation of tokenization is a matter of time and that the legal framework for cryptocurrencies naturally facilitates this process.

INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!

Buying token is not complicated if you invest with someone who makes it easy! Just open an account with a qualified asset tokenization company and create a digital wallet to store your applications.

Access our token marketplace, learn about the most varied offers and choose the ones that align with your investor profile. And you can start investing in digital assets for as little as 50 reais!

Open your account with BLOCKBR and earn more with your investments!

TOKENIZE YOUR ASSETS WITH BLOCKBR!

Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.

Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.

Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?

Come and talk to BLOCKBR.

We have the best token offering strategy on the market!

BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.

For more information, visit: http://www.blockbr.com.br or @blockbr_ on social networks

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