- Four of Brazil’s major financial authorities have come together to govern emerging technologies.
- The regulatory sandbox will be aimed towards understanding new fintech ideas.
Four of Brazil’s major financial authorities have come in unison to govern emerging technologies, including blockchain. The Ministry of Finance, the Central Bank of Brazil, the Securities Commission and the Superintendent of Private Insurance recently announced their motive to follow new regulations to manage fintech and cryptocurrency advances.
The regulators believe that the new regulations will affect Brazil’s securities, financial and capital markets. The financial authorities will also design a regulatory sandbox which will aim at understanding and allowing concessions for new fintech ideas. The increasing commercial activity amidst new technologies fueled the need to create the sandbox.
“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 regulators said.
Currently, in Latin America, Brazil holds the highest number of cryptocurrency holders and stands in the fifth position worldwide. Experts estimate that some form of cryptoasset will be owned by 8% of Brazilian citizens in 2019.