The Senate has now passed Brazil’s crypto regulation bill. It is scheduled for vote. This was achieved when the Senate’s Economic Affairs Committee unanimously approved the proposals on February 22.
If the Senate passes the bill, it will then move to the Chamber of Deputies where it will be discussed, and voted on. It will be presented to President Jair Bolsonaro for his signature if it is also passed by the lower chamber.
If that happens, President Bolsonero will make it official. Brazil will be the largest Latin American country to allow cryptocurrency to operate within its borders according to a set regulations determined by its government.
Investors’ interests should be protected by law through regulation. The legal net will also cover misuse of cryptocurrency through money laundering, terror financing and other similar activities.
What does the Bill Propose?
The bill was introduced by Senator Flavio Arns. It defines virtual assets as well as service providers, such brokers and digital asset exchanges. It prohibits the Brazilian Securities and Exchange Commission (Brazil Securities and Exchange Commission) from regulating crypto activities except for initial coin offerings (ICOs).
The bill proposes that crypto activities be jointly supervised by the Brazilian Central Bank as well as the Receita Federal tax collection authority. The federal government can appoint a crypto supervisor who will oversee and report on the industry’s day-to-day affairs.
It requires digital asset firms to report any suspected transactions or instances of money laundering, to the Brazilian Financial Activities Control Council.
For new crimes involving virtual assets, you can be sentenced to four to eight years imprisonment and a cash penalty.
Companies that eliminate 100% of their emission are exempted from tax on software and purchasing machinery for crypto trade, transaction and mining.
Example of El Salvador
El Salvador is a leader among Latin American countries since September 2021 when it adopted bitcoin legal tender. Since then, El Salvador and its president Nayib Bukuele have been the talk of the town for their bitcoin activities.
A survey from September 2013 found that almost half of Brazilians favor making bitcoin their official currency. Bitcoin was the preferred currency for many reasons, including financial stability and protection from inflation.
A member of Brazil’s lower chamber, the chamber deputies, had earlier proposed a bill that would allow public and private sector workers to receive BTC.
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