The Legal Framework on Foreign Exchange Transactions in Brazil: An Analysis of the Use of Cryptocurrencies to Exchange National Currencies

November 2022

Abstract

That cryptocurrencies have been defying central banks’ authority globally is no news. Central banks around the world have been lagging behind in a Sisyphus task of regulating situations that evolve as cryptocurrencies market develops. The scenario in Brazil is no different. While a new law (Law 14,286/2021) governing the foreign exchange market was recently enacted, empowering the Central Bank of Brazil to regulate foreign exchange trades, new forms of buying and selling foreign currency with the use of cryptocurrencies have been developing.

Authors

Juliana Bastianello Baldin Martins

Managing Director - Legal Affairs, GTIS Partners, Brazil

Juliana Bastianello Baldin Martins joined GTIS Partners on May 2011 and is currently a Managing Director at the firm. Mrs. Baldin Martins is responsible for overseeing legal activities in Brazil. Prior to joining GTIS Partners in 2011, Mrs. Baldin Martins was a lawyer at Machado, Meyer, Sendacz e Opice Advogados, one of the largest law firms in Brazil. Mrs. Baldin Martins graduated from São Paulo University Law School (USP) in 2007, completed her Master’s of Business Administration at Fundação Getulio Vargas (FGV) in 2011 and her Master’s in Corporate Law at São Paulo University Law School (USP) in 2022.

Bruno Quartieri Gaudêncio

Vice President - Legal Affairs , GTIS Partners, Brazil

Bruno Quartieri Gaudêncio joined GTIS Partners on October 2014 and is currently a Vice President and responsible for supporting legal matters at the firm. Prior to joining GTIS Partners, Mr. Bruno Gaudêncio was a lawyer at Machado, Meyer, Sendacz e Opice Advogados, one of the largest law firms in Brazil, where he was active in mergers and acquisitions, corporate restructuring and real estate practices. Mr. Bruno Gaudêncio graduated from Pontifícia Universidade Católica (PUC) in São Paulo in 2012.

Companies

GTIS Partners

With broad expertise in investing, structuring, design, development and asset management, GTIS professionals oversee projects in residential, industrial/logistics, office and hospitality from concept to completion. Today, GTIS is established as a leading investor in the US residential sector, with a portfolio footprint in more than 35 major markets located predominantly in the Sunbelt. In Brazil, GTIS is among the largest private real estate investors with significant experience in the acquisition and development of iconic office, residential, industrial and hospitality assets concentrated in São Paulo and Rio de Janeiro, the most liquid markets in Brazil. As of Q3 2023, GTIS has committed over $6 billion of equity capital or approximately $19 billion in total project cost across the US and Brazil.

GTIS Partners

GTIS Partners is a leading real estate investment firm in the Americas, headquartered in New York with offices in São Paulo, San Francisco, Los Angeles, Atlanta, Paris and Munich. The firm was founded in 2005 by Tom Shapiro and is managed by President Tom Shapiro and Senior Managing Directors Thomas Feldstein, João Teixeira, Rob Vahradian, Peter Ciganik, Robert McCall, Ed McDowell and Maristella Diniz. The leadership team is comprised of seasoned real estate professionals with deep expertise in investment, development, design, asset management, legal and operations across multiple economic cycles. The collective experience of the leadership allows GTIS to pursue and lead vertically integrated operating businesses in each of its chosen markets in the United States and Brazil. GTIS’ dedicated research professionals work hand-in-hand with its investment teams to identify macro trends early, including investing in Brazil in 2005, United States residential in 2009 and single-family rental as an emerging asset class in 2010. As a pioneer in its business fields, GTIS ranks among the largest real estate private equity investors in Brazil, and a leading diversified residential investor in the United States. GTIS takes a local approach to real estate investing with on-the-ground teams in seven key markets with 82 employees and $4.3 billion of gross assets under management. With broad expertise in structuring, design, development and asset management, GTIS professionals oversee projects in residential, office, industrial/logistics and hospitality from concept to completion.

Scientists recognise a dual planetary crisis: climate breakdown and biodiversity loss. The current extermination of nature by humans is often called the sixth mass extinction. Climate breakdown is caused by...Read more

Simon Boyle

Legal Director, Landmark Information Group, UK

Can blockchain technology help mitigate the black box phenomenon of AI applications?

In the rapidly evolving landscape of cutting-edge technologies, AI-driven business cases and blockchain solutions are like two relatives who don´t know each other. The reason is that the AI-inherent black...Read more

Matthias Artzt

Senior Legal Counsel, Deutsche Bank AG, Germany

John deVadoss

Board Member, Global Blockchain Business Council, USA

WeWork’s Chapter 11 bankruptcy and leases in Brazil

Cross-border effects of bankruptcy procedures in the U.S. gained a new chapter in 2023, when WeWork Group filed for Chapter 11. WeWork has since claimed that this reorganization would not...Read more

Nicholas Minoru Fernandes Yoshino

Associate - Legal Affairs, GTIS Partners, Brazil

Juliana Bastianello Baldin Martins

Managing Director - Legal Affairs, GTIS Partners, Brazil

Obtaining Redress for Victims of Crypto Fraud

The English Courts are world leaders in supporting victims of fraud and financial crime involving digital assets. Innovative approaches to such things as gateways for service out of jurisdiction, service...Read more

Andrew Maguire

Chancery and Commercial Barrister, Littleton Chambers, UK

Carmel King

Director, Insolvency and Asset Recovery , Grant Thornton UK, UK

The Legal Framework on Foreign Exchange Transactions in Brazil: An Analysis of the Use of Cryptocurrencies to Exchange National Currencies

Abstract

Authors

Companies

GTIS Partners

GTIS Partners

Related Papers