Bitcoin Carnival! – The National Congress should adopt law project regulation of the cryptocurrency market in Brazil. The adoption of the law will take place in the first half of 2022. The law will allow the President of Brazil to designate or set up a regulatory body. The goal ? Monitor the market. The Chamber of Deputies has been debating this legislation since 2015. It was approved in the first round of audits. The Senate attached it to another crypto-focused bill. The latter has already been approved by the Senate Economic Committee.
Statements by a senator on regulation in Brazil
Senator Irajá Abreu and Deputy Aureo Ribeiro are the two rapporteurs for the proposals in their respective legislative chambers. These legislators actually write a unified legal text which they will then submit to the full vote of the Senate.
“I do everything in contact with the house rapporteur, who has done a really good job. The central bank’s technical team was also very helpful. The lyrics are similar and converge into one. »
Irajá Abreu, Brazilian senator
Irajá Abreu also pointed out that the President of the Senate, Rodrigo Pacheco, should present the overall bill to a vote in plenary in April.
“By joining the projects together, we have accelerated the approval of this cryptocurrency milestone. There is a market demand for a more secure business environment and the need for criminal classification to avoid fraud, in addition to adapting Brazil to international agreements.”
Irajá Abreu, Brazilian senator
But the approval of the law in plenary will not make bitcoin a legal tender in Brazil, as is the case in salvador.
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The proposed law will allow the Brazilian president to determine a federal entity responsible forestablish rules for cryptocurrencies. The president could create a new regulator or delegate this function to the country’s Securities and Exchange Commission (SEC). It could also delegate it to e.g. Central Bank of Brazil.
The regulator will be responsible for defining market orientations. The selected device can also establish standards in accordance with international standards to prevent money laundering and asset concealment.
The bill also proposes a penalty of four to eight years in prison, in addition to a fine, for those who commit fraud in the provision of virtual asset services.
The bill also addresses a set of incentives to settle in Brazil for Bitcoin (BTC) and other cryptocurrency miners. He suggests thatexempt from taxes import of ASIC in the country. However, that may not be enough to attract Bitcoin miners to the country. In fact, energy prices in Brazil are among the highest in South America. Electricity costs about five times more than in countries like Paraguay and Venezuela.
South America is rather ahead of the rest of the world in terms of regulation of bitcoin and cryptocurrencies. Brazil will therefore be the next country to adopt clear rules for cryptocurrencies. Let us hope for the country and its investors that the government will be well inspired. Colombia, for example, in addition to having passed laws favorable to digital assets, is a very good example. The country has created a Sandbox for developing crypto projects between traditional banks and crypto exchanges.
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