Law 14,478/2022, which creates a civil framework for the crypto economy in Brazil, was published on December 22, 2022.
The new Law has become part of the Brazilian legal system, and will enter into force in 180 days after its publication.
Among the approved propositions, the following stand out:
- The creation of the legal categories of "virtual assets" and "virtual asset service providers", in line with FATF´s recommendations.
- The determination that virtual asset service providers must obtain a license to operate before an entity to be appointed by the Federal Public Administration.
- The determination that the activities developed by virtual asset service providers are guided by principles of free initiative and free competition, information security and protection of personal data, protection of popular savings, protection of consumers and users, protection against money laundering, among others.
- The application of the Consumer Defense Code to operations carried out in the virtual asset market, whenever appropriate.
- The submission of virtual asset service providers to Law 13,506/2017, which provides for the administrative sanctioning process of the Central Bank of Brazil and the Brazilian Securities and Exchange Commission, within the limits of responsibility of each entity.
- The equalization of virtual asset service providers to financial institutions for criminal purposes and the consequent subjection of these companies to the penalties of Law 7,492/1986, which defines crimes against the National Financial System.
- The creation of the crime called "fraud in the provision of services of virtual assets, securities or financial assets".
- The inclusion of the activities of virtual asset service providers within the scope of the anti-money laundering law (Law 9,613/98), and the increase in penalty from 1/3 (one third) to 2/3 (two thirds) if the crime (money laundering) is committed repeatedly, through a criminal organization or through the use of virtual assets.
- The discipline of the National Registry of Politically Exposed Persons (CNPEP) by act of the Federal Public Administration.
- The creation of conditions and deadlines, not less than 6 months, by the entity to be appointed by the Federal Public Administration for adapting virtual asset service providers that are already in operation to the requirements of the future Law.
Machado Meyer´s team remains attentive to the regulatory movement in the crypto asset sector in Brazil and abroad.
