Even though the crypto money market has been surrendered to the bears for a while, positive news continues to come for the ecosystem. Many countries are looking for solutions to regulate crypto assets, especially Bitcoin. Brazil made a very positive announcement recently. Here are the details of the announcement.
According to media reports, the Brazilian House of Representatives has approved a bill regulating crypto assets. The bill had previously received positive comments from the Senate. However, the House of Representatives has been silent on the same issue since April.
The bill needs President Jair Bolsonaro’s approval to be approved. However, Bolsonaro has a limited time to sign this. His term will expire on December 31, 2022.
Thanks to this confirmation bitcoin and other crypto assets will be recognized as an asset with value that can be used for payments.
This is the long awaited crypto- The bill is also expected to define crypto service providers. This way, the government will be able to protect its citizens against money laundering and crypto-related scams.
In addition to ratifying the bill, the executive branch is also expected to choose the government bodies to monitor the market. Regarding Bitcoin and other assets used for payments, the Central Bank of Brazil [BCB] expected to take responsibility.
The Brazilian Securities and Exchange Commission may be the regulatory body that oversees the market’s activities. It is among the news that the above-mentioned government agencies, together with the Federal Tax Office, will assist the central government in formulating legislation.
Brazil’s Move Matters for Bitcoin and Crypto Assets
According to a recent report, 16 million of the 216 million population have crypto assets. These statistics, on the other hand, have made good progress in the last two years. For example, in 2020, crypto ownership in the country stood at 4.9%. As we reported as Koinfinans.com, this rate increased to 7.8% in 2021.
Based on these increases, it would not be wrong to comment that the crypto industry is developing in the country. This development is expected to continue. Therefore, an appropriate regulatory framework for convenience and transactions is critical.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.