The Brazilian Association of Tokenization and Digital Assets (ABToken) presents its Strategic Report on Bill 4.932/2023, highlighting the decisive role of the proposal in the institutional consolidation of the virtual asset market in Brazil. According to the entity, the country is going through a turning point in the development of the digital financial system, requiring an urgent modernization of the legal framework.
Therefore, the document positions the bill as a structuring milestone for the sector, filling critical gaps left by current legislation and aligning Brazil with international best governance practices.
The proposal, already approved by the Chamber of Deputies and currently under consideration in the Federal Senate, amends key provisions of the Cryptoasset Legal Framework (Law No. 14.478/2022) and Law No. 13.506/2017. It also has significant support from various sectors. Entities such as CNF, Febraban, Anbima, and other financial system associations have expressed favorable positions, highlighting the importance of the measure for market integrity. Government bodies, including the Central Bank and the Ministry of Finance, also reinforce the need for the proposal's approval to guarantee effective investor protection, especially in insolvency scenarios.
Furthermore, the report points out that Bill 4.932/2023 follows the same direction as regulations adopted in markets such as the European Union, Singapore, the United Kingdom, and Japan, especially regarding fiduciary protection and asset segregation. This alignment positions Brazil as a safer and more competitive jurisdiction on the global stage, reducing legal uncertainties and expanding the flow of international capital.
Advance
The main advancement brought about by the bill is the mandatory segregation of assets between the platforms' assets and their clients' funds. In practice, this establishes that the crypto assets held in custody constitute separate assets, protecting investors against the risks of bankruptcy or judicial reorganization of the service providers. The text also stipulates that financial transactions must be carried out exclusively through individualized accounts in institutions supervised by the Central Bank, eliminating the use of "bus accounts" and increasing the transparency and traceability of operations.
“Bill 4.932/2023 represents a watershed moment. Asset segregation is a non-negotiable pillar for investor protection and for building an environment of trust and innovation in the country,” says Regina Pedroso, executive director of ABToken.
The report revisits the context that motivated the legislative proposal, marked by large-scale frauds between 2019 and 2022, investigated by the Parliamentary Commission of Inquiry into Financial Pyramids. The cases revealed serious governance failures, especially the commingling of assets between companies and clients, as well as the operation of foreign platforms without a legal presence in Brazil.
According to ABToken, the approval of the project is expected to raise the level of professionalism in the sector, promoting a restructuring of companies and encouraging market consolidation. The organization also highlights that the measure creates the basis for the advancement of new technological frontiers, such as the tokenization of assets in the real estate, agribusiness, and environmental sectors.
Innovations and impacts of the project:
- Asset protection: It transforms custody into a strict fiduciary service; in the event of the company's collapse, the users' assets must be fully returned or transferred, and do not form part of the bankruptcy estate.
- End of the "Bus Accounts": It requires that currency transfers occur exclusively through individual accounts in the name of the end user, combating opacity and facilitating financial traceability.
- National jurisdiction: It requires foreign platforms to have a formal headquarters and a legally constituted entity in Brazil to operate, subjecting them to oversight and enforcement by the Brazilian judiciary.
- Derivatives control: It prohibits the offering of derivatives linked to virtual assets without prior authorization from the CVM (Brazilian Securities and Exchange Commission), protecting investors from excessive leverage.
- Global convergence: It aligns Brazil with the practices of the most advanced jurisdictions in the world, such as the European MiCA regulation and the standards of Singapore and Japan.
“Asset segregation is a non-negotiable pillar of investor protection and institutional resilience. We are working with rapporteurs and committee chairs so that Brazil consolidates a safe innovation environment aligned with international governance standards. The definitive resolution on custody security contained in Bill 4.932/2023 is the fundamental premise for the subsequent unlocking of other vital agendas for the country, such as tokenization in agribusiness and the real estate sector,” concludes Regina.
Next Steps
With advanced progress in the Federal Senate and strong convergence between the public and private sectors, approval is expected sometime in 2026. ABToken emphasizes the importance of preserving the essence of the text approved by the Chamber of Deputies, ensuring a balanced transition to the new regulatory model. ABToken will continue to monitor the progress of the matter and engage in dialogue with institutional stakeholders to contribute to building a regulatory environment conducive to innovation and legal certainty.
