Crypto Assets, Metaverse and Consumer Law

The Federal Senate approved Act No. 4.401/2021 on April 26[1]to provide guidelines for the provision of virtual asset services[2] (crypto assets) and the regulation of entrepreneurs in this new market that has yet to enact special legislation.

In the European Union, proposals for regulation by the European Parliament and the Council on crypto asset markets have been submitted in Brussels, but the final text has yet to be approved.[3].

The two legislative proposals dovetail in the sense of requiring crypto-asset service providers to obtain authorization from competent public authorities to operate in the internal market and to enforce compliance with some procedural and organizational requirements. This requirement is sensible and prudent, and behold, the principle of transparency can be satisfied, so that those responsible for providing services can be identified with confidence and their activities monitored to better protect consumers.In fact, this is another meeting point, both[4] Emphasize the importance of consumer protection[5].

In fact, we are facing a new legal consumer relationship governed by the provisions of the Consumer Protection Act (CDC).Historically, with the rise of e-commerce[6]In 2000, there was a discussion about the applicability of the CDC, particularly with regard to the rules contained in Article 49, as it contained “especially over the phone or at home”, however, as the general rules for devices say “sWhenever a contract for the supply of products and services takes place outside a commercial establishment”, it covers all consumer legal relationships in the electronic environment.

To be sure, with the entry into force of special legislation,[7] Cryptoassets are bound to have conversations[8] and consumer protection law[9].

In a very short period of time, driven by technological developments and the determination of great economic entrepreneurs, legal relations have been transformed.around media themes metaverse[10]most recently led by Facebook CEO Mark Zuckerberg, who in 2021 changed the company’s name to Meta Platforms Inc., better known as Meta, given his obsession with building everything in this so-called digital environment.

A simple search on the internet will turn up some titles:

(A generation) The largest NFT sale in history brings 1.5 billion reais to land in the virtual world;
(two) Bitcoin holds at $38,000, but Metaverse rallies again

Legal relationships in this digital environment have become a reality and have grown exponentially, even by young people who do not have legal civil capacity. Consumer law is one of the other branches of law that must be complied with, mainly because of the obligation to provide information about its peculiarities, to enable the weaker party to make conscious decisions, and to protect personal data. Undoubtedly, the latter was greatly strengthened with the enactment of Law No. 13,709/18 (LGPD).

Professor Renato Porto discloses pioneering move for law courses in the Metaverse environment[11]which creates the digital platform and offers students paying for courses in consumer law the possibility of taking classes using this new technology.

Now is the time to support and monitor legislative proposals on this new and current legal relationship in Brazil and in the European Parliament, with proposals to improve the legislative text and require faster processing to ensure that this new digital market is regulated as quickly as possible .

[8] See several other legal texts by Prof. Cláudia Lima Marques, Dialogue between the Consumer Protection Code and the New Civil Code: “Original Dialogue” in the Articles on Combating Abuse. Consumer Law Journal. roll. 45. Years. 11. Sao Paulo: Editor, RT, January/March 2003.


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