Possible director of CVM highlights Bitcoin warmed up

The Federal Senate approved the name of the new possible director of CVM in Brazil.

CVM – Brazilian Securities Commission (Bitcoin, Criptomoedas, Investimentos, Pirâmides)
CVM – Brazilian Securities and Exchange Commission
Announcement

A possible new director of the CVM points out that Bitcoin is going through a very hot time in 2020 and the municipality is keeping an eye on it. The road to the appointment to the post still depends on a few steps.

To be a director at the Brazilian Securities Commission, a candidate is nominated to the Federal Senate. There, he must be approved by the Economic Affairs Commission (CAE).

After the approval in the CAE, he follows for debate in the Senate plenary, and must have a majority of votes. The vote to approve or not the name of the lawyer Alexandre Costa Rangel, according to the Senate Agency, will take place on Wednesday afternoon (21), at 16:00.

Announcement

In an interview with the Senate last Tuesday, Alexander commented on cryptomorphs.

In sabatina in the Federal Senate, possible new director of CVM highlights Bitcoin in good time in 2020
Bitcoin is a digital currency created in 2009, with its creator being unknown. Considered the first currency on the Internet, Bitcoin has grown exponentially in recent years.

Even so, as it is a currency independent of governments, Bitcoin is not regulated in many countries. In Brazil, for example, it is the Central Bank of Brazil that should regulate the Bitcoin, as it is considered a currency.

Even with the Central Bank being the expected regulator, some cases have even reached the CVM. This is because several companies in Brazil are offering investments related to the digital currency.

Of these businesses, several have unfortunately proved to be scams over time, using Bitcoin as an excuse to attract investors. In October, the CVM even promoted events about crypto currency to show more information about this market.

However, a new director of the CVM is to be chosen and is expected to hold the position for four years. The nominee is Alexandre Costa Rangel, a lawyer who already worked at CVM as a trainee between 2002 and 2004.

In his sabbatical at the Economic Affairs Commission, Alexandre was asked about Bitcoin. For him, in 2020 alone, Brazil recorded a 70% increase in investments in cryptoactives.

Senator who asked about cryptoactives for Alexandre is an advocate of blockchain in the public sector
The lawyer who may hold the position of director of CVM was asked about Bitcoin by Senator Izalci Lucas (PSDB-DF). According to the Senate Agency, Izalci questioned Alexandre about the cyber risks related to cryptomorons, such as Bitcoin.

„Cryptoactives go through a heated moment, in 2020 alone we had an increase of about 70% in these investments. It is still an initial form [in Brazil], but the CVM has looked very carefully at these cores of responsibility and reinforced the duty of diligence imposed on these Brazilian service providers authorized to operate. There is a control historically very well exercised“, informed the Senate Agency about Alexandre’s response.

By informing that Bitcoin is going through a heated moment, Alexandre made clear the CVM’s position on the subject. The municipality, although not responsible for regulating the sector, is keeping an eye on the matter.

It is worth highlighting that Senator Izalci is an advocate of the use of blockchain in the Brazilian public sector. In addition, he recently presented a bill on cyber security, i.e., he understands the issue.

Finally, a bill increases penalty for blows with Bitcoin and financial pyramids was proposed in August 2020. On that occasion, Senator Soraya Thronicke (PSL/MS) proposed that the regulation of cryptomorphs be dealt with urgently in the legislation. It is clear that the Senate has an interest in regulating Bitcoin and is monitoring the case.