There is no special legislation regulating legal relations in the field of blockchain and cryptocurrency in Brazil. Some legal relations are regulated by analogy, following explanations of regulators, and a part of activity remains unregulated. There is no special authority responsible for the regulation of cryptocurrencies and blockchain and resolving controversial issues. The main regulators are: The Chamber of Deputies of Brazil, the Securities and Exchange Commission (CVM) and the Federal Tax Service (RF). In general, there are no serious contradictions in the approaches of the regulators.
Definiteness of Legal Regulation
Individual legal relations arising in connection with cryptocurrencies and blockchain technology are regulated by analogy in accordance with the current legislation, the application of which regulators clarify in their instructions (in particular, the activities of investment funds and the "crypto assets" transactions taxation). At the same time, a significant part of the activities remain unregulated: mining, the activities of crypto exchanges and crypto wallets (including in terms of AML/KYC), the legal status of obligations arising from blockchain is not defined, either.
Stability of Legal Regulation
The last year saw changes in the rules governing relationships involving cryptocurrencies. The judicial practice also lacks unified attitude towards cases related to cryptocurrencies. The Chamber of Deputies is currently considering a bill introduced on April 4, 2019 that determines the legal status of cryptocurrencies and establishes penalties for criminal activities related to them.
Adequacy of Legal Regulation
Since Brazil currently lacks special legislation regulating relations in the field of blockchain and cryptocurrency and only a small part of the activities are regulated by analogy, while judicial practice hardly takes into account the specifics of the crypto business in its judgments, we can only speak about neutral regulation.