Legal and Regulatory

Operating at the intersection of cryptocurrency, traditional finance, and emerging markets creates complex regulatory challenges that we're addressing proactively. Rather than hoping to avoid regulatory attention, we're engaging with authorities, regulators and law firms to build a compliant, sustainable protocol.

In Brazil, the regulatory environment is actually becoming clearer. The Central Bank has announced frameworks for crypto operations, while the securities regulator (CVM) is developing sandbox programs for tokenization. We're positioning Cambi not as a way to circumvent regulations but as infrastructure that enables compliant innovation. Our RWA investments follow existing securities laws – we're simply accessing them through blockchain rails.

The protocol's structure intentionally avoids regulatory triggers where possible. We don't custody user funds – smart contracts do. We don't promise returns – we provide tools for users to access yields. We don't issue securities – we create synthetic representations of assets. These distinctions might seem semantic but they're crucial for regulatory positioning.

Our compliance strategy includes mandatory KYC for institutional vaults accessing certain RWA categories, while maintaining permissionless access for basic functionality. This hybrid approach satisfies regulatory requirements for securities laws while preserving DeFi's open access ethos. We're also implementing transaction monitoring to detect suspicious activity, not because we want to surveil users but because sustainable protocols must address money laundering concerns.

Looking ahead, we see regulation as an opportunity rather than threat. Clear frameworks will enable institutional participation, validate our approach, and potentially restrict competitors who haven't invested in compliance. By building compliant infrastructure from day one, we're positioning Cambi to benefit from regulatory clarity rather than suffer from it.