The bill that will regulate cryptocurrencies in Brazil will not have asset segregation. Deputy Expedito Netto (PSD-RO), rapporteur for PL 4,401/21, said in a press conference this Friday (10) that he understands that it is reasonable for an exchange to be able to use a client’s assets to make loans and other financial transactions, such as paying interest. consumers in the same way that banks do with checking and savings accounts. In addition, the rule established in the Senate that companies would have to have a CNPJ and make reports to COAF (Council for the Control of Financial Activities) will also be removed from the text to operate in Brazil. He even said that “COAF does not have the capacity today, as far as I know [de receber e analisar os relatórios que passariam a ser enviados pelas corretoras]“. Netto also confirmed what every market expects, that the Central Bank will be appointed by the Executive Branch as regulator of the crypto market. He stated that all companies will have 180 days to adapt to the rules that the BC stipulates. During this period, brokers can continue to operate as they are now.
Senate change court
According to the deputy, he will withdraw all major changes made by the Senate in the bill. This includes asset segregation, the immediate need for CNPJ and submission of reports to COAF, and tax exemption for mining cryptocurrencies with green energy. The rapporteur said he should release the report on Monday (13) after a conversation with representatives of Coaf to find out if in fact they are not able and willing to take on the task of receiving thousands of reports without preparation time. For the politician, there is a great possibility that the PL will be guided and voted on on the same day — the president of the House, Arthur Lira (Progressistas-AL), has already indicated that he will speed up the process.
Asset segregation in the world of cryptocurrencies gives investors security that their assets, even in custody at a brokerage, are in fact theirs. So, if something like a company goes bankrupt, these assets are returned to the customer and not used to pay off creditors. But the deputy sees this relationship in a traditional way, understanding the brokerage as a common bank. So, he believes, it is natural to allow the exchange to use these assets to invest and pay the customer something for the use of the resource. Asked if the broker could then sell the client’s bitcoins to invest, the deputy said: “Don’t move the client’s money, but they are able to give you more profit. The money stays there, he doesn’t spend his money. When your money goes to the bank, isn’t it in custody? People who invest in this market that I know want the risk.” At this point, the deputy said that imposing this rule on brokers would benefit banks, which, if they had to implement asset segregation, would lose functionality. “If it were applied in the same way to banks, we could reach an agreement, on a common denominator. But I can’t change the text, so we would have to amend it. If it is to have a segregation of assets that reaches the entire financial market. Then I am for it,” he said.
CNPJ and adaptation period
According to Netto, the requirement that companies have a CNPJ and that they immediately report to COAF “prevents international companies from coming to Brazil at this time”. In the Senate text, it was established that in order to operate in Brazil, companies must have a CNPJ and report suspicious operations to COAF. Only those who already have the documentation could use the 180 days to adapt to other points. Foreign companies would then have to first have this minimum structure of a legal entity formed in Brazil. But Expedito Netto thinks the rule is unfair and that everyone should have 180 days to comply with the rules. “The market has been unregulated for ten years, what is another 180 days?” he asked.
Mining tax exemption
Regarding the tax incentive for mining cryptocurrencies with renewable energy, the deputy said that tax debates deserve a more in-depth and specific debate. “Environment tax incentives for solar energy already exist. We have no way to increase to a certain category. And this clean energy exemption debate is in the Chamber in specific PLs. It is a subject that deserves a debate just for him”, he said. In addition, Netto pointed out that the general population spent the year paying more for electricity due to the red flag and that the wealthier classes had access to cheaper energy precisely because in many cases they already have renewable sources, such as solar panels.