Brazilian Desk : New Legal Basis on Exchange Operations in Brazil

New Legal Basis on Exchange Operations in Brazil,

The Law 14.286 of 30.12.2021 is entering into force on 29.12.2022

 

by Bertrand de Solère, partner in Brazil

 

On 29.12.2021, the Brazilian Federal Government has promulgated the law 14.286, about “exchange market, Brazilian capital abroad, foreign capital in Brazil” called also “New Legal Basis for Exchange Operations” (“Novo Marco Legal do Câmbio”).

This law entered into force in 29.12.2022 (one year from 30.12.2021). During 2022 the Brazilian Central Bank should have issued the necessary regulation for its full application. However, this regulation has not been enacted yet.

This new law aims at facilitating the use of foreign currency in Brazilian economy. It should reduce bureaucracy and costs, favor the expansion of the competitiveness of Brazilian companies, attract foreign investment, favor the innovation in foreign exchange transactions and give access to “Liberalization Codes”, a requirement for accession to the Organization for Economic Cooperation and Development (OECD).

Its main provisions are:

These new provisions should foster fintech and peer-to-peer platforms.