A brand new cryptocurrency invoice was authorized by the Chamber of Deputies of the Brazilian Congress final week, and is now awaiting evaluate by the Senate for approval. The challenge, if authorized, would introduce a central physique to regulate all cryptocurrency brokerage exercise — ostensibly the Central Bank of Brazil — and set up 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 laws that seeks to carry readability to cryptocurrency regulation in the nation. The challenge, recognized as Bill 2303/15 and proposed by Deputy Aureo Ribeiro, establishes definitions for exchanges and digital currencies. It additionally requires a central physique to oversee all cryptocurrency-based operations, which might be appointed by the manager department of the federal government. The invoice will now be handed to the Senate, which can finally resolve whether it is handed into regulation.
The regulation doesn’t point out cryptocurrencies by identify, and as a substitute makes use of the time period “virtual currencies.” However, the challenge does make clear that it doesn’t have an effect on the digital representations of the nationwide fiat foreign money (the true), different worldwide currencies, or rewards factors given by some corporations in promoting campaigns. A digital foreign money is outlined as a illustration of worth that can be utilized electronically for funds or for funding functions.
Harsher Penalties and a Central Regulator
The textual content contains particular penalties for cryptocurrency-related crime and establishes a brand new penalty for exchanges or events that illegally handle cryptocurrency portfolios for third events. This crime is assessed as a kind of embezzlement and can be punishable by 4 to eight years in jail and fines.
While the invoice establishes a central regulator, it can’t identify it explicitly for authorized causes. However, Expedito Netto, the rapporteur of the fee that carries the regulation, said that it’s seemingly this physique would be the nation’s central financial institution.
If authorized, Brazil would be a part of a bunch of nations in Latam which have devoted guidelines for cryptocurrency belongings, that are labeled in another way from different, related belongings. El Salvador is considered one of these international locations, approving its so-called “Bitcoin Law” lately, establishing Bitcoin as authorized tender in the nation.
Paraguay has additionally taken steps in this course, introducing a invoice to regulate cryptocurrencies in July. However, the laws seeks to set up controls on crypto transactions, and as a substitute of contemplating bitcoin a foreign money, views it as a commodity.
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