Brazil’s central bank announced a comprehensive, multi-phase plan on Monday to regulate cryptocurrencies and virtual asset service providers, aiming to finalize the regulatory proposals by the end of 2024.

These forthcoming regulations will establish rules to ensure greater transparency and address both the benefits and risks associated with cryptocurrency investments.

The central bank opted for a phased approach to effectively oversee the country’s growing cryptocurrency service market.

“From this point on, the contributions will be used and the regulatory proposals will be finalized at the end of 2024,” the central bank stated.

This latest timeline adjustment follows a 2022 law that granted the central bank the authority to develop these regulations, which were initially expected to be completed by June 2024, as anticipated by the central bank’s director of regulation, Otavio Damaso, during a congressional hearing last year.

The regulatory process began with a public consultation in December 2023, which concluded in January. Another public consultation is scheduled for the second half of this year.

The central bank told Reuters that the initial consultation aimed to gather public feedback on the proposed regulations and address issues not covered by the 2022 law, such as asset segregation by virtual asset service providers.

The central bank is also progressing with regulations for stablecoins, particularly those used in payments and foreign exchange.