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Brazilian Senate approves bill to legalise and regulate crypto

The Senate in Brazil has passed the Pro-Bitcoin Bill to regulate and legalise the use of cryptocurrencies for payment methods and transactions. Since 2015, the clause has been under debate by Brazil’s Chamber of Deputies and has now reached point of potentially being implemented in the country. 

According to reports made by Coin Telegraph in Brazil, the bill will most likely be approved by the National Congress by the first half of the year now that the Senate has passed it. 

While cryptocurrency is widely used by investors and various businesses in Brazil, the new framework allows for a more regulated setting. Under this provision, businesses who fail to adhere to the guidelines can spend at least 8 years in prison. 

Currently, there are two cryptocurrency-related bills processed by the government. To further create a clear guideline, the government has attached an additional clause that entirely focuses on the function of digital assets in the economy. 

Senator Iraja Abreu is one of the legislators who approved passing the bill. He has discussed the importance of combining the two said bills into one for a more streamlined process. 

‘I’m doing everything in contact with the Chamber’s rapporteur, who did a very good job. The Central Bank’s technical team has also been very helpful. The texts are similar and converged into one’. 

He continues, ‘By joining the projects together, we accelerated the approval of this cryptocurrency milestone. There is a market demand for a safer business environment and the need for criminal classification to avoid fraud, in addition to adjusting Brazil to international agreements’. 

Once finalised, the law will give the President the power to appoint an entity that will draft the clauses to regulate digital assets. The Securities and Exchange Commission (CVM) and the Central Bank of Brazil (BC) are the two institutions that can be assigned for the job. 

If approved, Brazil will join the list of other countries around the world that has adopted the use of cryptocurrencies in its economy. Another example includes El Salvador, where Bitcoin was officially considered legal tender as of last September 2021. 

Get the rundown of the latest cryptocurrency news and updates here at Cryptoshimbun! 

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