The Brazilian Central Bank brought significant new provisions on the mandatory registration of foreign direct investments in Brazilian companies (“IED”), carried out through the use of virtual assets in the Foreign Capital Control System – Foreign Direct Investments (SCE-IED),
The publication of Resolution No. 410 is a milestone in regulating the use of cryptocurrencies and digital assets as investment instruments in the country.
In Brazil the foreign direct investment is characterized by the acquisition of a significant stake in Brazilian companies with the intent to influence their management.
The main changes brought about by Resolution 410 determine the following:
1. Deadline. When capitalization is carried out through virtual assets, registration with the SCE-IED must be formalized within 30 (thirty) days from the movement resulting from the direct foreign investment.
2. Sanctions. The lack of registration may result in sanctions, including the impossibility of settling foreign exchange transactions, both inflows and remittances abroad.
3. Virtual Assets. The introduction of virtual assets as an investment vehicle increases the complexity of financial operations, requiring strict control by regulatory authorities.
For investors who aim to use virtual assets as a means of investment in Brazil, it is imperative to register with the SCE-IED, in line with regulatory requirements. Furthermore, it is important to ensure that all stages of the process are adequately completed, minimizing risks and enhancing investment opportunities.
The requirement for the registration of foreign direct investments conducted through virtual assets in the SCE-IED reflects a proactive regulatory stance by the Central Bank of Brazil, aiming to ensure the integrity of the national financial system and transparency in investment operations, demanding from investors a well-structured compliance strategy.
