> For the complete documentation index, see [llms.txt](https://www.opensourcelaw.com.br/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.opensourcelaw.com.br/en/legislation/2.-legal-framework-for-cryptoassets.md).

# 2. Legal Framework for Cryptoassets

The Legal Framework for Crypto Assets presents guidelines that must be observed in the <mark style="background-color:purple;">provision of virtual asset services</mark> by legal entities.&#x20;

{% hint style="info" %}
The Consumer Protection Code must be applied to the crypto assets market, as applicable.
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## Definitions:

* **Virtual Asset:** digital representation of value that can be traded or transferred by electronic means and used for making payments or for investment purposes.
* **Virtual Asset Service Provider:** legal entity that performs, on behalf of third parties, at least one of the following services: (i) exchange between virtual assets and national or foreign currency; (ii) exchange between virtual assets; (iii) transfer of virtual assets; (iv) custody or administration of virtual assets; and (v) sale of or participation in financial services related to virtual assets.

## Obligations:

* keep a record of any transaction in national or foreign currency, securities, credit instruments, metals, virtual assets, or any asset that can be converted into money, exceeding the limit set by the competent authority;
* use good <mark style="background-color:purple;">governance and transparency practices in operations</mark>;
* apply <mark style="background-color:purple;">a risk-based approach</mark>;
* apply measures for information security and <mark style="background-color:purple;">protection of personal data</mark>;
* apply measures for <mark style="background-color:purple;">consumer protection and defense</mark>;
* apply measures for the protection of public savings; and
* apply measures for <mark style="background-color:purple;">prevention of money laundering and terrorist financing</mark>.

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These activities must be carried out <mark style="background-color:purple;">continuously</mark>, in order to avoid the imposition of fines by the regulatory agency.
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## Crimes:

<details>

<summary>Article 171-A of the Penal Code: Organize, manage, offer or distribute wallets or broker transactions involving virtual assets, securities, or any financial assets with the purpose of obtaining unlawful advantage, to the detriment of others, inducing or keeping someone in error through trickery, deception, or any other fraudulent means.</summary>

Penalty - imprisonment, from 4 (four) to 8 (eight) years, and a fine.

</details>

<details>

<summary>Article 1 of Law 9.613/98: Conceal or disguise the nature, origin, location, disposition, movement, or ownership of assets, rights, or values derived, directly or indirectly, from a criminal offense.</summary>

Penalty: imprisonment, from 3 (three) to 10 (ten) years, and a fine.

§ 4 The penalty shall be increased by 1/3 (one third) to 2/3 (two thirds) if the crimes defined in this Law are committed repeatedly, through a criminal organization <mark style="background-color:purple;">or through the use of a virtual asset</mark>.

</details>