Brazil authorities to develop regulatory sandbox for blockchain, DLT
Mon, 17 Jun 2019, 03:15 am UTC
The Brazilian government and financial regulators are reportedly developing a regulatory sandbox type model targeting new technologies including blockchain.
The Special Finance Secretariat of the Ministry of Economy, the Central Bank of Brazil, the Securities Commission, and the Superintendency of Private Insurance will work together to ensure the new initiative will adapt to the ongoing digital transformation in the financial, capital, and insurance segments.
According to the announcement by CVM, technologies including distributed ledger technology (DLT), blockchain, and artificial intelligence have allowed the establishment of new business models that produce products and services of higher quality and scope.
The move aims to implement regulations in corresponding sectors to ensure compliance with the rules of each segment, regardless of how services and products are delivered, especially in the areas of legal certainty, customer and investor protection, and safety, health and efficiency of markets.
In addition, the participating regulators will seek to act jointly if technology-related activities go through more than one regulated market.
“It is hoped that the implementation of this regulatory regime will be able to promote the development of products and services that are more inclusive and of higher quality and that can foster constant innovation in the financial, security, and capital markets,” the statement said.
As previously reported, the government of Brazil is seeking to encourage implementation of blockchain and other advanced technologies in all local public administration unit that will see the federal and state government divisions implementing evolving technologies like blockchain and artificial intelligence (AI) to enhance services to the public.
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