With the Brazilian Senate passing a critical legal process regarding digital currencies funds and their use, the country cryptocurrency It has also taken an important step in regulating the market.
The Bill Will Be Voted in the Brazilian Lower House and Senate
The country’s economic affairs committee approved the text of the bill in its vote today. The bill in question will then be voted on first by the lower house and then by the senate. If the bill passes these two stages, it will become law with the signature of Brazilian president Jair Bolsonaro.
The bill in question defines virtual assets and classifies their service providers. In the bill, it is stated that the federal government will decide who will regulate the cryptocurrency-related business. Senator Iraja Abreu, spokesperson for the bill, said in his statements that he thought this responsibility would be given to the country’s central bank. According to Abreu’s statements, the central bank played an active role in the creation of the crypto bill.
If the bill passes, Brazil will become the largest Latin American country to regulate cryptocurrencies.
According to the bill, virtual asset service providers will be obliged to prevent money laundering and concealment of their assets. In addition, these institutions will combat criminal organizations, the financing of terrorism and the proliferation of weapons of mass destruction. The bill states that non-compliance will result in imprisonment and fines.
“Draft Law Will Expand Daily Use of Cryptocurrencies”
Abrue, the spokesperson of the said bill, said that the bill focuses on investment rather than general use, bitcoin and that he believes it will create a more favorable environment for the general use of cryptocurrencies:
“With regulation, cryptocurrencies will become even more popular. With the approval of the regulation, we will see an increasing use of crypto technology in supermarkets, commerce and car trading.”
*Not investment advice.