A bill governing the crypto sector was recently approved by the Brazilian Chamber of Deputies on Tuesday.
In order for the bill to be officially recognized, which was passed by the Senate in April but remained in the Chamber of Deputies for a while, it must now be approved by the executive branch.
Deputy Aureo Ribeiro’s bill establishes a new type of virtual asset-related fraudulent crime, punishable by two to six years in prison and a fine. It additionally mandates the creation of a “virtual service provider” license, which businesses such as exchanges and other cryptocurrency businesses must apply for.
The text states that businesses will have 180 days to adjust to the new regulations before the bill takes effect.
The text states that digital assets that do not belong into that category will be regulated by a different institution elected by the executive branch, while securities-like crypto assets will be governed by the Brazilian Securities and Exchange Commission (CVM). It is expected for the Central Bank to be appointed.
A similar suggestion was made back in June to enable Brazilians to utilise cryptocurrency as a payment method and safeguard their private keys from being confiscated by courts. The goal is to turn cryptocurrency assets into a tool for exchange and a “instrument of access” to goods, investments, or services.
The CEO of Transfero Group Thiago César, who is a highly important figure in the Brazilian crypto ecosystem, claims that it will not have an impact on Brazilians’ daily use of cryptocurrencies — despite the fact that the FTX crash has had an influence on many areas of the cryptocurrency industry.
