The Central Bank of Brazil is in full swing. One of its initiatives is to regulate verticals that are already in place but do not bring in revenue for the government through taxes.

The Central Bank of Brazil finished a public consultation on Wednesday (31) regarding the regulation of the crypto asset industry in Brazil, a topic that BACEN has been discussing with several industries for the past couple years.

Businesses in the crypto asset industry submitted proposals for industry regulation to the Central Bank using the legislative framework that Congress approved in December 2022.

The need for compliance regulations that include money laundering prevention and transaction monitoring, as well as a clear distinction between exchange-owned assets and those held by their clients, were two of the 240 suggestions that the industry defended.

Ownership segregation is thought to be a precaution against situations such as those of FTX, a cryptocurrency exchange that crashed at the end of 2022 due to an overwhelming volume of withdrawals.

The market leader, Binance, emphasizes that only banks and brokers whose operations have already received BC approval should be able to offer services involving cryptocurrency assets.

Binance also reaffirms its support for the authority’s request that the digital asset market be required to provide financial education tools to its clients.

The public consultation also received comments from participants regarding the activities it develops and the virtual assets they trade, as well as the contracting of necessary services, governance and conduct guidelines, cybersecurity, and other topics.