June 15 (Cointime) - Brazilian President Lula has signed a decree establishing rules for the country's central bank and securities regulator in relation to cryptocurrencies. The legislation allows the Central Bank of Brazil to regulate and supervise virtual asset service providers, while the Comissão de Valores Mobiliários will oversee many token projects that qualify as securities.

The decree will come into effect on June 20 and will not affect laws on consumer protection and financial crimes. Brazil's central bank is also expected to begin a pilot project for a central bank digital currency in collaboration with major payments firms.