Brazil will regulate the development of new technologies’ applications in capital markets, finance and insurance following a new initiative.
Major government and financial authorities in Brazil have teamed up to develop a regulatory sandbox model targeting new technologies such as blockchain, Cointelegraph Brazil reports on June 13.
The new regulatory initiative brings together the Central Bank of Brazil, the Securities and Exchange Commission (CVM), the Superintendence of Private Insurance (SUSEP), and the Ministry of Economy’s Special Secretariat for Finance in order to adapt to the digital transformation affecting the financial, capital and insurance sectors in Brazil.
Revealed by the CVM, the project implies that emerging technologies such as blockchain, robotics and artificial intelligence have enabled the establishment of new business models that generate new products and services of higher quality and scope.
The regulators have expressed their intention to enforce their regulations in corresponding sectors to maintain compliance in accordance with the rules of each industry, regardless of how services or products are delivered, the CVM stated in the announcement.
As a part of the initiative, the participating regulators will also seek to act jointly in regard to the technology-related activities that go through more than one regulated market, the report notes.
The Financial Action Task Force also recently announced plans to release a note clarifying how participant jurisdictions should oversee the digital assets sector.
