Four financial authorities in Brazil have co-announced a new blockchain regulatory sandbox in the South American country, with a long-term intent to adapt new regulations to manage the rise and development of fintech and other related products such as crypto.
The new regulatory sandbox has now appeared after much expectation following the earlier announcement by the Financial Supervision Counsel of Brazil on the regulation of crypto in line with money laundering laws, and an order two weeks ago on the commissioning of a committee for crypto regulation.
Blockchain development can now be freely tested within this safe environment, to be overseen by Brazil’s Ministry of Finance, the Central Bank of Brazil, the Securities Commission, and the Superintendent of Private Insurance. Together, they hope to understand better the concepts and implementation of blockchain within this sandbox, while allowing for new ideas in fintech.
The initiative is mainly driven by an increase in commercial activity, especially with emerging tech, said the regulators:
“The use of innovative technologies as distributed ledger technology, blockchain, robo-advisors and artificial intelligence has allowed the rise of new business models, reflecting a bigger offer and reach.”
The Treasury’s secretary also said that the use of blockchain in Brazilian financial markets could open the doorways for crypto and even fundraising models like token offerings. The country reportedly holds the most crypto owners in Latin America, while holding 5th place globally. It has been estimated that 8% of Brazilians will own some digital asset by the end of the year.
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