Tuesday, October 4, 2022

Brazil Set to Regulate Cryptocurrencies as Senate Approves Bitcoin Law

In a plenary session during the week, the Senate of Brazil has approved the country’s first bill as regards digital assets setting the stage for the creation of a crypto regulatory framework for the world’s ninth-largest economy.

The bill which was first introduced in 2015 by Federal Deputy Aureo Ribeiro was approved in a session led by the Senate President, Rodrigo Pacheco. The legislation still requires assent from the Chambers of Deputies before being signed into law by President Jair Bolsonaro. The process is predicted to be completed before the fall of 2022 according to professionals familiar with the issue.

Per the bill, Brazil’s executive branch is tasked with formulating rules governing digital assets but it’s still undecided as to which body will monitor and control the space, whether the Securities and Exchange Commission, its Apex bank, or a new regulatory body will be created for this task.

Also included in the bill is the proposed punishment for crypto-related crimes. The bill’s author, Senator Flavio Arns, believes the punishment should be proportional to the crime. He proposes fines and jail terms ranging from four to eight years.

A part of the bill also included the mining sector as it hopes to encourage mining in the country by offering complete tax benefits to professional investors.

Should the bill which has many supporters be passed into law, it would make the Brazilian economy the largest in Latin America to provide a regulatory framework for digital assets even though El Salvador in September last year made Bitcoin a legal tender.

The South American country also plans to delve into the creation of its CBDC. Trials are expected to begin before the end of the year.

Rio de Janeiro, the second-largest city in Brazil, last month disclosed that it’s working on plans that will become operational next year to allow payment in Bitcoin for Urban property tax.

Countries make moves to regulate the digital currency

Earlier this month, the governor of the Central Bank of Georgia, Koba Gvenetadze in an interview shared the nation’s plan to regulate the use of digital currency.

The Ukrainian president Volodymyr Zelenskyy last month accented to a bill to regulate the cryptocurrency market making the National Commission on Securities and Stock Market the regulator for the space.

The growing embrace of global regulators into the cryptocurrency ecosystem is a welcome development, one that can impact the overall growth of the industry in the longer term.

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

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