The first phase involved testing privacy and programmability functionalities of the platform through a single use case. The second phase will involve testing the infrastructure developed for the pilot by implementing financial services through smart contracts created and managed by third-party participants on the platform.

The central bank has indicated that in Q3 of 2024 it will issue a new call for participation in the pilot. 

“Today’s announcement of co‑ordinated international action on cryptoassets is a major step forward, marking another important milestone towards the widespread and co-ordinated approach to combat tax evasion through greater transparency and exchange of information,” Secretary-General Cormann said.

“We strongly welcome the extensive support being shown for quick action to make the international exchange of information collected under the OECD standard on cryptoasset reporting a reality. The international community can count on the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes to ensure that the tax transparency architecture remains both up-to-date and effective going forward.”

The Crypto-Asset Reporting Framework (CARF) is a key component of the International Standards for Automatic Exchange of Information in Tax Matters developed by the OECD under a G20 mandate. It provides for the automatic exchange of tax-relevant information on cryptoassets and comes against the backdrop of a rapid adoption of the use of cryptoassets for a wide range of investment and financial uses.

The decree, which comes into force on 20 June 2023, says: "The Central Bank of Brazil will discipline the operation of virtual asset service providers and will be responsible for supervising said providers."

The decree makes clear that "assets respresenting securities" will be overseen by country's securities regulator, the Comissão de Valores Mobiliários (CVM).

The CVM issued a note regarding the decree, making it clear that tokens which are considered securities "must comply with CVM regulations, especially when raising funds from investors (public offering of distribution)."

The decree does not affect the jurisdiction of  the National Consumer Protection System, or the CVM’s authority over financial crime prevention.

The new law, which comes into effect in June 2023, creates a crime of fraud using virtual assets, securities or financial assets. The penalty is  4 to 8 years imprisonment plus a fine.

The law also creates a licensing regime for virtual asset service providers, including exchanges and trading intermediaries.