Law No. 14,478/2022, that establishes the guidelines of the Cryptoasset sector in Brazil, is published in the Official Gazette

Law No. 14,478/22, which resulted from the conversion of Bill No. 4,401/2021, was published in the Federal Official Gazette of Brazil on December 22, 2022. Law No. 14,478/22 provides for the guidelines regarding the provision of virtual asset services in Brazil.

The rendering of virtual asset services is now an activity that companies providing services of this kind can carry out from now on, as long as in compliance with the new rules and upon prior authorization granted by an agency or entity of the federal government to be appointed.

Among other relevant provisions, Bill No. 14,478/22 provides for the definition of the crime of fraud with the use of virtual assets, securities or financial assets, as an amendment to Law No. 7,492/1986.

The text of Bill No. 4,401/2021, approved by the House of Representatives (Câmara dos Deputados) in November, remained unchanged and, therefore, its conversion into law did not introduce any changes to the landscape already described in our Client Alert of December 02, 2022, which can be accessed, in full, here. The rule will come into force on June 20, 2023, which is 180 days after its publication.

Demarest’s Banking and Finance team is available to assist our clients and partners and provide further clarifications on the matter that may be necessary.