The Brazilian Senate approved the recently introduced crypto policy, which prompted the bill to debate in the House of Representatives. Congressional representatives will have to give the motion a green light and have it signed by President Jair Bolsonaro for approval into law. The presented project is the result of the merger of several bills dealing with cryptocurrency.
Brazilian Senate Greenlights Crypto Bill
The Brazilian Senate has given the green light to a crypto bill that seeks to provide more clarity and protect users from various crypto-related frauds that have taken place in the country. The bill will now be submitted to the House of Representatives, which will be responsible for debating and approving or rejecting this new bill.
The project is developed by selecting different projects presented earlier by taking some parts from one part and some from another. Senator Flavio Arens, Senator Stephenson Valentim, Senator Soraya Thoronic, and Federal Rep. Oiro Ribeiro contributed to the final text. This was previously announced by local media, which informed the foundation that it is taking steps to achieve approval of the crypto law before the end of the second quarter.
While discussing the bill, Rapporteur Iraja Abreu said:
We have advanced the discussions of the report so that here today we can finally vote on the issue of crypto-asset regulation… the central bank has been constantly asking Congress to position ourselves with regard to the regulatory framework that can understand the dimensions of this new business environment.
A crypto bill approved by the Brazilian Senate defines the concept of cryptocurrencies and virtual asset service providers (VASPs), but leaves the faculty of naming the institution designated for its oversight to the executive branch of the government. In previous iterations of this project, this college was assigned to the Central Bank of Brazil. The executive branch of the government will be able to assign these tasks to an existing organization or to create just one for this purpose.
The topic of non-fungible tokens (NFTs) has been left out of regulation, with the regulation of these tools left to another bill due to their special features. However, the document amends the country’s penal code to include a new crime, called “fraud in the provision of services for virtual assets, securities or financial assets,” with penalties ranging from two to six years in prison plus fines.
The document also proposes tax benefits for cryptocurrency mining operations that use 100% renewable energies and become carbon neutral.
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