Considerations of the criminal law on the unauthorized operation of virtual assets service providers - exchanges

Abstract

The Law No. 14,478/2022 has defined the legal entities considered virtual asset services
providers and established the obligation for prior authorization from the federal public administration
for these companies to operate in Brazil. The Central Bank of Brazil has not yet concluded the relevant
regulations on the subject. There are significant gray areas regarding the law's applicability that should
be more precisely defined, such as manufacturers and/or developers of virtual wallets and De-Fi
applications. The recommendations of the Financial Action Task Force (FATF) may help supplement
the legal definitions. The legal significance of operating a financial institution by equivalence in Brazil
holds significant criminal relevance and requires clarification. Law No. 12,965/2014 may provide some
insights into potential avenues for clarification.