BRAZIL Law and Practice Contributed by: Alessandra Martins and Amanda Blum Colloca, Machado, Meyer, Sendacz e Opice Advogados
8.2 Treatment of Different Types of Insurance No response has been provided in this jurisdic - tion. 9. Regtech 9.1 Regulation of Regtech Providers Regtechs are not regulated, but they could be subject to regulation if offering regulated products and services, or advising on financial investments. However, providing general advice on regulatory aspects is not a regulated activity in Brazil. 9.2 Contractual Terms to Assure Performance and Accuracy The provisions are not dictated by regulation, since financial services are not specifically regu - lated. There is no “one size fits all” requirement, because this necessarily lacks specificity with respect to industry practices. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry Many traditional players are looking at offering crypto-assets to their clients through partner - ships with crypto exchanges. In line with the new public consultations (detailed in 1.1 Evolution of the Fintech Market ), they might be required to request additional permissions from the BCB and CMN to keep offering these services. 10.2 Local Regulators’ Approach to Blockchain Local regulations have implemented the Crypto Law and granted the BCB the authority to spe - cifically regulate crypto-assets, as provided in
ECPs 109, 110 and 111 (see 1.1 Evolution of the Fintech Market ). 10.3 Classification of Blockchain Assets Not all blockchain assets are considered finan - cial instruments. The Crypto Law provides that virtual assets are considered as digital repre - sentations of value, and can be negotiated or transferred through electronic means and used to make payments, for investment purposes or otherwise. The Crypto Law excludes from its scope: • national and foreign currency; • electronic currency; • instruments that enable their owner to gain access to certain products and services, or to benefits arising therefrom, including points and fidelity programmes (redemption of utility tokens); and • representations of assets of which the issu - ance, registration, negotiation or settlement occurs in the context of the securities market (security tokens). 10.4 Regulation of “Issuers” of Blockchain Assets Issuers of blockchain assets are not specifically regulated. Custodians will be regulated pursuant to ECPs 109 and 110 (as defined in 1.1 Evolution of the Fintech Market ). 10.5 Regulation of Blockchain Asset Trading Platforms Crypto-asset trading platforms are defined as: • intermediaries, which provide for the pos - sibility of acquiring crypto-assets, having a relationship with the end user without having custody; • custodians, which exclusively hold clients’ private keys; and
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