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  • Crypto regulation in Brazil increases competitiveness in the digital assets market!

Crypto regulation in Brazil increases competitiveness in the digital assets market!

The relationship between Brazil and digital assets has never been so positively highlighted with the structural, legal and behavioral changes in society. Crypto regulation in Brazil, without a doubt, is the most important chapter.

Digital assets can be defined as assets created and resident in the digital environment or assets that represent real and financial goods digitally – this is the case of the token.

The universe is large and ranges from product images in e-commerce or a customer portfolio to cryptocurrencies and business tokens – the latter still raise doubts and uncertainty in many consumers and investors.

Regulating cryptoassets, therefore, is a crucial step to provide more credibility, generating an environment where there is visibility into the operations and actions of players – offerers, cryptoasset brokers and tokenizing companies.

BLOCKBR, a company that develops tokenization infrastructure, will talk about the challenges and opportunities of the regulated digital assets market!

WHAT ARE DIGITAL ASSETS

A digital asset is any business or personal property:

  • Created, managed and negotiated exclusively in a digital environment;
  • With its own market value or;
  • Digitally represents the value of a real or financial asset.

It is common for a digital asset to be seen as an input for a product or service, as is the case with social networks. However, they have their own value, which is defined by factors such as audience size, level of activity and advertising potential.

CENTRALIZED DIGITAL ASSETS

These are digital assets controlled in technology environments with a central server or private blockchain, under the responsibility and control of the asset owner. It is the best-known model, as it is present in all organizations.

Some examples of centralized virtual assets are:

  • Website, e-commerce platform and blog;
  • Social media;
  • Image rights, trademarks and patents;
  • Private blockchain smart contract;

DREX, the future Brazilian digital fiat currency, is a centralized digital asset, as it will be controlled on a private BACEN blockchain.

DECENTRALIZED DIGITAL ASSETS

These are virtual goods originating from the decentralized management model, in public blockchains, databases distributed across network points (computers) and without central control.

Some examples of decentralized virtual assets are:

WHAT IS CRYPTOCURRENCY REGULATION IN BRAZIL

At the end of 2022, the Cryptocurrency Law was sanctioned, aimed at regulating cryptoactive activity in the country.

Some objectives of the law were:

  • The recognition of tradable digital assets as a legalized and regulated economic activity;
  • Define requirements for digital currency exchanges and asset tokenization companies to legally establish themselves in the market;
  • Implement KYC (Know Your Customer) and KYT (Know Your Transaction) practices to prevent financial crimes;
  • Typify crimes with digital assets;
  • Create inspection mechanisms to prevent and curb fraud and illicit activities.

Currently, the legal framework process is underway to define the practices for each objective achieved – for example, who will oversee the regularization of companies.

The forecast for the end of this stage is in the 1st half of 2024.

IMPACTS OF CRYPTO REGULATION IN BRAZIL ON MARKET COMPETITIVENESS

The positive effects of virtual asset regulation are many and represent a new era for the credibility of business tokens.

MARKET HEATING AND GREATER COMPETITIVENESS

Clear definitions of legal standards and sanctions will heat up the market, attracting companies interested in doing business with tokens. With the popularization and greater visibility of the market, service providers and competition will increase, benefiting customers.

IMPACTS OF CRYPTO REGULATION IN BRAZIL ON MARKET COMPETITIVENESS
Image: Canva

ENCOURAGING CONTINUOUS INVESTMENT IN INNOVATION

One of the main obstacles to the growth and consolidation of the cryptographic business market is the uncertainty about investing in conditions that the consumer market considers uncertain.

In a legally predictable market, companies will invest in innovation and the development of new blockchain technologies and crypto assets with more confidence.

GREATER ACCEPTANCE ON THE INTERNATIONAL MARKET

A legally secure scenario encourages foreign companies to establish partnerships with national companies or contribute capital, strengthening the local market and the image of Brazilian companies that wish to invest abroad.

Do you know what tokenization infrastructure is for the financial market and how it is fundamental for business with transactional tokens? Find out more with BLOCKCBR!

REGULATED CRYPTO MARKET: CHALLENGES

Regulation of activity in Brazil is always surrounded by the expectation of a ghost: excessive regulation that hampers the investment capacity of a sector in which simplicity and freedom are fundamental stones of success.

A negative result will be market stagnation and a drop in foreign investment, something that is still crucial in the Brazilian digital market.

It is important that regulators balance the nuances that have paved the way for the success of the digital asset market so far – decentralization, peer-to-peer transactions – with regulation that is minimally necessary.

REGULATED CRYPTO MARKET: OPPORTUNITIES

Well-executed crypto regulation, with an eye on the high degree of innovation that attracts a potential audience of bidders and investors worth billions of dollars, will be the central point of the success of a regulated crypto market.

A legally predictable and secure ecosystem will attract capital contributions from abroad and encourage local companies to invest to grow and offer services.

And most importantly: more companies tokenizing assets to generate business, boosting the economy and keeping Brazil as one of the best places to produce and profit from disruptive technology!

TOKENIZE ASSETS WITH BLOCKBR AND BOOST YOUR RESULTS!

Tokenization is a reality in the market, with an increasing number of companies and people generating revenue with tokens. Recent actions by BACEN and the digital real are increasing the credibility of the technology.

For the success of your project, it is essential to have an adequate and efficient tokenization infrastructure, comprising:

  • Technical, fiscal and legal feasibility study;
  • Issuance of tokens and smart contracts with transparent governance;
  • Distribution of tokens on a simple and secure sales platform;
  • Efficient and assertive tokenization governance.

Discover BLOCKBR’s infrastructure work for regulated and unregulated markets through an All-In-One platform that offers interoperability between assets and investors.

You don’t want to see your competitor get ahead to make more money.

Or do you want to?

INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!

Buying a token is simple if you have a partnership that makes everything simple like BLOCKBR! We are an experienced asset tokenization company qualified to advise on how to invest in the tokenization of real assets and financial assets and obtain great results safely.

Open an account on our token marketplace and you will have access to a diverse universe of offers for real estate tokens and other real and financial assets.

Start investing in tokens from 50 reais, with BLOCKBR, maximize your earnings and get closer to realizing your dreams!

BLOCKBR Digital Assets is a fintech specialized in asset tokenization and investments that delivers the infrastructure your business needs. Visit http://www.blockbr.com.br or @blockbr_ on social media and find out more!

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