Categories
Blockchain News Coin News

New Cryptocurrency Bill Advances to Senate in Brazil

A new cryptocurrency bill was approved by the Chamber of Deputies of the Brazilian Congress last week, and is now awaiting review by the Senate for approval. The project, if approved, would introduce a central body to regulate all cryptocurrency brokerage activity — ostensibly the Central Bank of Brazil — and establish new penalties for crypto-related crimes.

Chamber of Deputies Passes New Crypto Bill in Brazil

The Chamber of Deputies of the Congress of Brazil has approved new proposed legislation that seeks to bring clarity to cryptocurrency regulation in the country. The project, identified as Bill 2303/15 and proposed by Deputy Aureo Ribeiro, establishes definitions for exchanges and virtual currencies. It also requires a central body to oversee all cryptocurrency-based operations, which will be appointed by the executive branch of the government. The bill will now be passed to the Senate, which will ultimately decide if it is passed into law.

The regulation doesn’t mention cryptocurrencies by name, and instead uses the term “virtual currencies.” However, the project does clarify that it doesn’t affect the digital representations of the national fiat currency (the real), other international currencies, or rewards points given by some companies in advertising campaigns. A virtual currency is defined as a representation of value that can be used electronically for payments or for investment purposes.

Harsher Penalties and a Central Regulator

The text includes specific penalties for cryptocurrency-related crime and establishes a new penalty for exchanges or parties that illegally manage cryptocurrency portfolios for third parties. This crime is classified as a type of embezzlement and would be punishable by four to eight years in prison and fines.

While the bill establishes a central regulator, it cannot name it explicitly for legal reasons. However, Expedito Netto, the rapporteur of the commission that carries the law, stated that it’s likely this body will be the nation’s central bank.

If approved, Brazil would join a group of countries in Latam that have dedicated rules for cryptocurrency assets, which are classified differently from other, similar assets. El Salvador is one of these countries, approving its so-called “Bitcoin Law” recently, establishing Bitcoin as legal tender in the country.

Paraguay has also taken steps in this direction, introducing a bill to regulate cryptocurrencies in July. However, the legislation seeks to establish controls on crypto transactions, and instead of considering bitcoin a currency, views it as a commodity.

What do you think about the cryptocurrency bill in Brazil? Tell us in the comment section below.

Bitcoin News
Regulation, aureo ribeiro, Bill 2303/15, Bitcoin, Brazil, Cryptocurrency, law project

5 Things to Consider Before Investing in Cryptocurrency

5 Things to Consider Before Investing in Cryptocurrency There is no question that cryptocurrencies have established a new investing sector. With the value of digital currencies such as Bitcoin over ...
Read More

Tax on Cryptocurrency In India – Complete Guide 2022

Wondering how taxation on crypto works in India? How much do you have to pay tax on cryptocurrency in India? How 1% TDS is levied on crypto? Don’t worry we ...
Read More
shutterstock 659324809 1 1U2yg5

New Cryptocurrency Bill Advances to Senate in Brazil

A new cryptocurrency bill was approved by the Chamber of Deputies of the Brazilian Congress last week, and is now awaiting review by the Senate for approval. The project, if ...
Read More

USDC Sees Native Launch on Avalanche

USDC, the second leading stablecoin by market cap, has been launched on the Avalanche blockchain as a native token. Previously, users wanting to get USDC in Avalanche had to bridge ...
Read More

Crypto Lender Nexo Launches NFT Lending Desk, Loans up to 20% for Popular NFTs

On December 16, the blockchain-based lending platform Nexo announced the firm has launched a non-fungible token (NFT) lending desk. While the company offered crypto-backed loans using tokens like bitcoin and ...
Read More
Share with Others