Earlier this October 2022, the Central Bank of Brazil (Bacen) released Communication No. 169/2022, which presents the full part of its proposed regulation for Law No. 14,286/2021, which consolidates, simplifies and modernizes the rules related to the Brazilian foreign exchange market, Brazilian capital abroad, foreign capital in the country and the provision of information to the agency. The new law, published on December 29, 2021, enters into force on December 31 of this year.
The initiatory of the Bacen is the result of the provisions of Article 5, item I, of Law No. 14.286/2021, which states that it is the competence of the regulatory body the foreign exchange market and its operations and dispose of the types and characteristics of products, forms, limits, fees, deadlines and other conditions of operation.
To propose and elaborate this regulation, the agency published on May 12, 2022 public consultation (ECP) no. 90/2022, allowing the society to comment on the draft then presented and offer its contributions. Both individuals and representatives of legal entities were able to participate.
The result of the process, after several changes in the original design, is very promising. In fact, the Central Bank, as it has done on several other fronts, expects the new regulation of the foreign exchange market to foster the insertion of the Brazilian economy in the international scenario. The agency's objective is to stimulate innovation, reducing bureaucracy and ensuring transparency and legal certainty for all participants, in line with international best practices.
For us, from the gaming market, the creation of a special code for the identification of exchange transactions related to both virtual assets (code 34038) and gaming and bets (code 34045) is of special interest, as set out in Annex I of the Resolution proposal.
The establishment of specific codes for these exchange purposes is encouraging news, since it denotes Bacen's recognition of the legality and legitimacy of international payments and transfers within these sectors, and is a recognition of the growing importance of the gaming and betting market in Brazil and worldwide.
The code will also serve as a mechanism for supervising and understanding the size of this market in the country, and will allow the Brazilian government, after the regulation of Law No. 13,756/2018, which created the lottery modality of fixed quota bets, to create both promotional mechanisms and restrictive measures for this type of operation, protecting the local regulated market.
André Napoli
Lawyer at Maia Yoshiyasu
