Brazilian Senate Passes New Cryptocurrency Bill – Regulating Bitcoin News
Last week, the House of Representatives of Brazil’s Congress approved a new cryptocurrency bill, which is currently awaiting review and approval by the Senate. If the project is approved, it will introduce a central agency to supervise all cryptocurrency brokerage activities — ostensibly the Central Bank of Brazil — and impose new penalties on crypto-related crimes.
Brazil’s House of Representatives passes new encryption bill
House of Representatives of the Brazilian Congress Officially recognized New proposed legislation aimed at clarifying the regulation of cryptocurrencies in the country. The project was identified as Act No. 2303/15, proposed by Deputy Aureo Ribeiro, which established the definition of exchanges and virtual currencies. It also needs a central agency to oversee all cryptocurrency-based businesses, which will be appointed by the government administration. The bill will now be submitted to the Senate, which will finally decide whether to pass it into law.
The regulation does not mention cryptocurrency by name, but uses the term “virtual currency”. However, the project does clarify that it will not affect the national legal currency (real), other international currencies, or the digital representation of bonus points provided by certain companies in advertising campaigns. Virtual currency is defined as a value expression that can be used electronically for payment or investment purposes.
Severe penalties and central regulators
The text includes specific penalties for crimes related to cryptocurrency and establishes new penalties for exchanges or parties who illegally manage cryptocurrency portfolios for third parties. This crime is classified as a form of corruption and will be punishable by imprisonment and fines of four to eight years.
Although the bill establishes a central regulatory agency, it cannot be clearly named for legal reasons. However, Expedito Netto, the rapporteur of the committee responsible for the law, stated that this institution is likely to be the country’s central bank.
If approved, Brazil will join a group of countries in Latin America that have established specific rules for cryptocurrency assets that are classified differently from other similar assets. El Salvador is one of these countries and recently approved the so-called “Bitcoin Law”. Establish Bitcoin serves as the country’s legal tender.
Paraguay has also taken a step in this direction, introduce A bill regulating cryptocurrencies in July. However, the legislation aims to establish control over encrypted transactions, not to treat Bitcoin as a currency, but as a commodity.
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