A brand new cryptocurrency invoice was permitted by the Chamber of Deputies of the Brazilian Congress final week, and is now awaiting evaluate by the Senate for approval. The challenge, if permitted, would introduce a central physique to control all cryptocurrency brokerage exercise — ostensibly the Central Financial institution of Brazil — and set up new penalties for crypto-related crimes.
Chamber of Deputies Passes New Crypto Invoice in Brazil
The Chamber of Deputies of the Congress of Brazil has approved new proposed laws that seeks to convey readability to cryptocurrency regulation within the nation. The challenge, recognized as Invoice 2303/15 and proposed by Deputy Aureo Ribeiro, establishes definitions for exchanges and digital currencies. It additionally requires a central physique to supervise all cryptocurrency-based operations, which will probably be appointed by the manager department of the federal government. The invoice will now be handed to the Senate, which is able to finally resolve whether it is handed into legislation.
The regulation doesn’t point out cryptocurrencies by identify, and as an alternative makes use of the time period “digital currencies.” Nevertheless, the challenge does make clear that it doesn’t have an effect on the digital representations of the nationwide fiat forex (the actual), different worldwide currencies, or rewards factors given by some corporations in promoting campaigns. A digital forex 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 classed as a kind of embezzlement and can be punishable by 4 to eight years in jail and fines.
Whereas the invoice establishes a central regulator, it can not identify it explicitly for authorized causes. Nevertheless, Expedito Netto, the rapporteur of the fee that carries the legislation, said that it’s possible this physique would be the nation’s central financial institution.
If permitted, Brazil would be a part of a gaggle of nations in Latam which have devoted guidelines for cryptocurrency property, that are categorized otherwise from different, comparable property. El Salvador is considered one of these international locations, approving its so-called “Bitcoin Regulation” not too long ago, establishing Bitcoin as authorized tender within the nation.
Paraguay has additionally taken steps on this course, introducing a invoice to control cryptocurrencies in July. Nevertheless, the laws seeks to ascertain controls on crypto transactions, and as an alternative of contemplating bitcoin a forex, views it as a commodity.
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