The Brazilian Exchange Association (Abracam) is set to launch a compliance seal aimed at the sports betting sector. In 2020, Abracam created the seal for the exchange sector, and now the goal is to expand.
The information was given by the entity‘s executive president, Kelly Massaro, at the opening of the 8th Compliance & Business Day.
According to information from Valor Econômico, she also commented that the entity has actively collaborated with public consultations by the Central Bank that affect the exchange segment.
There is also a proposal to regulate banking as a service (BaaS), which affects EFX (Electronic Foreign Exchange, a segment of digital international payments and transfers) service providers. As well as in the case of the consultation for the regulation of virtual assets.
“In an internal survey we did, 50% of members plan to work with stablecoins, but only 6% do so at the moment. We have a trend of rapid growth,” he commented.
Kelly Massaro also highlighted that a new rule will come into effect that allows foreign exchange brokers to carry out operations of up to US$500,000. The rule should come into effect in July and increases the current limit of US$300,000. “This encourages competition and contributes to a more solid market.”
Abracam and the Central Bank are in favor of moving forward on the issue
The Central Bank‘s director of relations, citizenship and conduct supervision, Izabela Correa, who was also at the event, commented that the foreign exchange market, due to the very nature of its operations, has greater risk in terms of preventing money laundering (PLD) and financing terrorism (FTP).
She highlighted that the new exchange rate framework brought the novelty of the risk-based approach and that it is necessary to advance in this transition.
Still, the Central Bank’s director suggested that some adjustments may eventually be necessary. She explained how the process works today, in which information about EFX providers is only forwarded by regulated entities to the BC when requested.
“It is only possible to develop effective strategies and actions for adequate compliance with regulations if the business areas of the institutions are involved in these issues, and the rules are also very well known,” pointed out Izabela Correa.
