The special code that cryptocurrency exchange houses will have is like a certificate of legality. This measure recognizes crypto-exchanges in Brazil as part of the country’s commercial activity.
The demand for cryptocurrencies in the Brazilian market does not stop. On the contrary, it will have a legal form. Since next May, cryptocurrency exchange houses in Brazil will have their commercial operation code, together with the Brazilian Institute of Geography and Statistics (IBGE).
The National Classification of Economic Activities (CNAE) is a legal way to standardize, through codes, Brazilian economic activities throughout the country. These codes serve to facilitate the framing of a company within its business framework.
The operation of cryptocurrency exchange houses in Brazil is a relatively newer activity. For this reason, this activity does not have a specific classification. Until now, some of the cryptocurrency exchange houses adopted the code referring to the intermediation and administration of services or the business code in general, even other codes used to refer to Internet providers.
This is exactly what will change from May, although there is no specific date for the assignment of these codes until now. The Brazilian Institute of Geography and Statistics (IBGE) will update its system and include the new code for crypto exchanges. The code will be number 6619-3 / 99, called Brokerage and Custody of Crypto Assets.
Requested Code
ABCripto, an entity that brings together companies in the sector, was in charge of directing the request for this measure. “The process is long and bureaucratic, but it is finally having a positive result”, Safiri Felix, President of the association, said.
The request was made by action 08/2019 of the National Strategy to Combat Corruption and Money Laundering (ENCCLA), an organ of the Brazilian National Council of Justice (CNJ). The intention is to provide greater legal certainty to the digital asset exchange sector.
“It is a way to bring security for society since a specific CNAE brings legal security to the citizen who wants to hire a provider of a specific service (and not to any company with a different purpose) as a guide for the public power, thus allowing to monitor the sector”, the Prosecutor of the National Treasury, Ana Bez Batti, said to local media.
Steps Towards Regulation
Different specialists in the world of cryptocurrencies consider this to be an important step in the regulation of the crypto-exchange sector in Brazil.
Ana Paula Rabelo, an accountant specialized in crypto assets, comments: “It is an achievement in the sense of showing the market that exchange houses are legal and have their CNAE. This is a certificate of legality, a very positive path for the entire crypto sector”.
Reinaldo Rabelo, CEO of the exchange house Mercado Bitcoin, considers that the creation of the code is another step in favor of the organization of the sector. “We still need more robust regulations to prevent inconveniences from suffocating the business; something like the fintech banking services companies did when the Central Bank prevented the closure of their bank accounts”.
The founder of the exchange house PagCripto, Carlos Lain, points out that the creation of the CNAE occurs during an excellent time for the market, either to facilitate relations with financial institutions or for compliance reasons.
“This is only a first step so that in the future of our market we can operate effectively with large inflows of institutional capital and avoid scams that could put other clients at risk”, he explains.
By María Rodríguez
