Hours Left for Cryptocurrency Law in Brazil! Good or Bad for the Industry?

in Brazil cryptocurrency unit regulation is preparing to become law at midnight local time.

Major Cryptocurrency Law In Brazil Will Be Enacted Hours Later If President Doesn’t Veto

The bill, approved by the country’s House of Representatives two weeks ago, aims to regulate virtual asset providers. If the outgoing President Jair Bolsonaro does not veto by the end of the day, the bill will automatically become law.

Brazil has been at the forefront of digital payment innovations by producing PIX, a simple, virtually free payment system that revolutionized the industry. The central bank also has a digital currency that it is currently testing and plans to launch in 2024.

According to Blocknews, a regulator will also be appointed for the industry, and the industry expects it to be the Central Bank of Brazil. After FTX illegally mixed customer funds with company funds, the Brazilian crypto money regulator is expected to take a step towards keeping these funds separate.

The proposed law also allows public institutions to hold cryptocurrencies.

According to local media, the bill will force all locally active crypto providers to have a physical presence in the country and will impose fines and even jail terms for those who break the new rules. According to media, the bill will give companies a period of time to comply with the rules.

Brazilian crypto advocates supported the bill, saying it is important to establish rules in the industry. The country is one of the 10 most active markets for crypto globally, according to 2022 Chainalysis data.

*Not investment advice.