Brazilian Senate Approves Cryptocurrency Law Project – Regulation Bitcoin News

The Brazilian Senate has approved a recently presented cryptocurrency policy, pushing the project to deputy chamber discussions. The bill must be approved by Congressional delegates and signed by President Jair Bolsonaro to be passed into law. The project presented is the result of the merger of several legal projects related to crypto.

Brazilian Senate Gives Green Light to Crypto Law Project

The Brazilian Senate has given the green light to a cryptocurrency law project that aims to provide greater clarity and protect users from various cryptocurrency-related scams that have taken place in the country. The project now moves on to the Chamber of Deputies, which will be responsible for discussing and approving or rejecting this new project.

The project was elaborated by choosing different projects presented earlier by taking some parts from one and some from the other. Senator Flávio Arns, Senator Styvenson Valentim, Senator Soraya Thronicke and Federal Deputy Aureo Ribeiro all contributed to the final text. This was previously announced by local media, who informed that the institution was taking steps to secure the approval of a cryptocurrency law before the end of the second quarter.

While discussing the legal project, rapporteur Iraja Abreu stated:

We brought the discussions of the report to the fore so that we could finally vote here today on this issue of crypto asset regulation… The central bank has been constantly demanding Congress to position us with regard to a regulatory framework that has the dimension of this new business environment .

Legislative Project Provisions

The Brazilian Senate-approved cryptocurrency law project establishes the concept of cryptocurrencies and virtual asset service providers (VASPs), but leaves the faculty to oversee the institution designated to the executive branch of the government. In previous versions of this project, this faculty 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 create it for it.

The subject of non-fungible tokens (NFTs) was left out of the scope of the regulation, leaving the regulation of these tools to another legislative project due to their special properties. However, the document does change the country’s criminal code to include a new crime called “fraud in the provision of services of virtual assets, securities or financial assets,” with penalties ranging from imprisonment from two to six years. plus fines.

The document also proposes tax breaks for cryptocurrency mining operations that use 100% renewable energy and become carbon neutral.

What do you think about the approval of the cryptocurrency law by the Brazilian Senate? Tell us in the comments below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. Describing himself as late in the game, he entered the cryptosphere when the price surge happened in December 2017. With a computer engineering background, living in Venezuela and influenced by the cryptocurrency boom on a social level, he offers a different point of view on crypto success and how it helps the unbanked and underserved.

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