BRAZIL Law and Practice Contributed by: Alessandra Martins and Amanda Blum Colloca, Machado, Meyer, Sendacz e Opice Advogados
• calculating the fair market value of the assets. 10.11Virtual Currencies Pursuant to the Crypto Law, as defined in 10.3 Classification of Blockchain Assets , all kinds of blockchain assets are subject to the same law, except for: • national and foreign currency; • electronic currency; • instruments that enable their owner to have access to specified 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). 10.12Non-Fungible Tokens (NFTs) Non-fungible tokens (NFTs) are seen by the CVM as asset-backed tokens and subject to the How - ey test, to determine whether or not they are classifiable as securities and thus whether they should be subject to the requirement of prior registration with the CVM. NFTs considered as securities are not subject to the Crypto Law, but rather to the Capital Markets Law. CFTs that are not securities and do not fall within the catego - ries excluded from the Crypto Law are regulated by the BCB. Analysis on a case-by-case basis is necessary.
finance is governed by Joint Resolution No 1 of 4 May 2020( “Joint Resolution 1” ) which requires all electronic currency issuers and providers of payment and deposit accounts to participate in open finance at least through sharing payment initiation services. 11.2 Concerns Raised by Open Banking Joint Resolution 1 and the open finance proto - cols establish specific technology and applica - tion programming interface (API) standards and requirements to enable regulated players to par - ticipate in open finance. Additionally, the BCB conducts tests to verify that the security stand - ards are being followed. There are several types of fraud involving finan - cial services and institutions authorised by the BCB, including (i) identity fraud; (ii) finan - cial fraud; (iii) fraudulent activities to obtain an account holder’s credentials and access their account; (iv) phishing; (v) data breaches; (vi) investment fraud; (vii) credit card fraud; and (viii) money laundering. 12.2 Areas of Regulatory Focus Regulators are focused on all kinds of fraud related to financial services and services regu - lated by the BCB. The BCB and CMN issued Joint Resolution No 6 on 23 May 2023, which came into force in November 2023 and requires authorised institutions to share data pertinent to fraud, with the purpose of preventing future cases of fraud. 12.3 Responsibility for Losses Subsequent to recent judicial decisions, institu - tions authorised by the BCB can be held respon - 12. Fraud 12.1 Elements of Fraud
11. Open Banking 11.1 Regulation of Open Banking
Open banking, supported by the local regula - tory framework launched in 2020 by the BCB, has been renamed “open finance” , encompass - ing investment and insurance products. Open
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