BRICS is a set of five emerging economies – Brazil, Russia, India, China and South Africa – an acronym that was coined by prominent economist Jim O’Neill in 2001. In 2011, the forum that fosters the collective and intergovernmental BRICS thrust was established. Each member state’s legislation regarding regulation of crypto assets varies, so let’s break it down further.
In Brazil, the crypto regulation bill voted and approved on December 2022 with the stipulation that all crypto service providers need to follow it before June 2023, states that although crypto assets may be deemed legitimate as payment systems, they can not be legally considered as tender. The management and oversight of digital securities, instead, will be conducted by the Brazilian Securities and Exchange Commission (CVM). Moreover, people can be found guilty both for monetary violation and even slaps with forced labor or jail time if guilty of fraud.
In 2022, the Russian president Vladimir Putin himself approved regulations on digital asset operations. According to the law, virtual currencies’ use as payment solution is okay, yet cannot be offered legit tender. All digital asset operators in the country must register with the Bank of Russia (who also necessarily take charge of the balance of latter’s crypto wallets). On top of all, any complex transaction made over a period of a year reaching beyond 7,757 dolars must render its counterpart to the tax authorities. Along with this, investors voluntary take an self-assess online test to fully understanding and assess related risks.
As for India, the ongoing regulations remain undefined – investment solely serves under investors’ risk. In 2023, the nation’s Ministry of Finance afforded ‘cryopto grants’ anti-money laundering regulations under its supervision. All such products inherent in the business layer must oblige to Prevention of Money Laundering Act standards such as user verification (failing which can bring about fines for reason on 219 USD).
Obverse end of the scale, China inscribed a whole new legal into place back in 2017, forbidding nearly 100% of affiliated crypto businesses related transactions or campaigns, stopping or denting most actions directed at Initial Coin Offerings (ICO) and extensive crypto exchanges. Such financial buzz apart, digital assets have conceptual recognition and are seen as a legit trading tool only, yet a netural tender, in no wise.
When it comes to South African reality, these are all cloud-unearthed regulated by the South African Financial Sector Conduct Authority (FSCA). This chiefly exercises its due powers thorough The Financial Advisory and Intermediary Services Act (FAIS) which every crypto service must be licensed under. Moreover, the state is always publicly promising to mostly examine any crypto adverts before and account for the possible excessive risks that may take place.
Both past and upcoming BRICS meetings many times sparked public treatment discussing potential creation of a crosscut crypto backed by reliable assets such as gold. Supposedly this will allow up front introduction of a safe currency model.
