CCT Approves Law for Asset Segregation in Cryptocurrency Exchanges

The Commission on Science, Technology, Innovation and Informatics (CCT) has approved a bill that requires cryptocurrency exchanges to segregate client funds from company assets. The bill will be reviewed by the Commission on Economic Affairs (CAE) and subsequently by the Commission on Constitution, Justice and Citizenship (CCJ). The proposal was motivated by the bankruptcy of the FTX exchange in 2022, which used client funds for personal investments. Asset segregation aims to protect investors from the misuse of their resources by exchanges. In the event of insolvency of the exchanges, investors would have their assets separated from those of the company. In addition to PL 1.536/2023, PL 2.451/2023 also mentions asset segregation. Senator Carlos Portinho emphasized the importance of investor protection and the need to preserve banking secrecy.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.