Answer ... The BCB is responsible for monetary and financial regulation in general, which includes monetary policy, the stability of the financial system, coin emission and foreign exchange controls. It has strong oversight and investigative powers: it can issue warnings, impose fines, conduct audits and suspend or prohibit operations of financial companies and related individuals.
The CVM has a mandate to promote the development of the securities market, ensure its efficient functioning, protect investors and ensure that there is adequate information on the market. It is also the industry watchdog, with the power to authorise companies to operate, supervise market agents and impose sanctions. It issues and enforces its own regulations, which apply not only to companies, but also to individuals working in the securities market.
SUSEP is responsible for regulating the insurance, private pension funds and capitalisation markets. It has regulatory power over insurance companies, authorising their establishment and monitoring their operations. SUSEP has been cooperating closely with the BCB and the CVM in fostering innovative services in Brazil using new technologies such as blockchain.
The Federal Revenue Service (RFB) is the federal tax authority, with extensive powers to collect, regulate and issue rulings and fines in connection with federal taxes. The RFB has been very active in trying to frame blockchain businesses for taxation purposes. It recently issued Ordinance 1.888, requiring the disclosure of information regarding cryptocurrency transactions, under penalty of a fine if the information is inaccurate, incomplete, incorrect or overdue.
The recently created National Data Protection Authority is responsible for enforcing the data protection law in Brazil. It has broad regulatory and supervisory powers, including the power to issue regulations and rulings and to impose sanctions in the form of warnings and fines. It can also block or prohibit the use of personal data in case of infringements, as well as suspend the operations of a database and any data processing activities.
Along with the administrative sanctions applied by the abovementioned authorities, criminal or civil prosecutions may be pursued by state or federal prosecution offices, as appropriate.