According to the Chain Analysis of Geographic Crypto report, Brazil is the largest cryptocurrency market in Latin America based on its transaction volume. It has received nearly $91 billion worth of cryptocurrency transaction volume over the period of July 2020 and June 2021.
The Crypto regulation in Brazil finally sees some positive outcomes. Senate finally passes a Senate bill for regulating the country’s cryptocurrency market. Well-defined crypto legislation is considered significant as this new law would well-defined virtual assets and service providers of Brazil. The service providers need to follow certain regulations and guidelines, in line with international standards under the proposed law.
This new Law would further help to protect the client’s funds, and personal data, and prevent money laundering. This new legislation is significantly proposed to stop the recent years’ crypto scams in Brazil, by providing more clarity on money laundering in the country.
The bill’s rapporter Iraja Aberu expects Brazil’s Central bank to be charged with regulating cryptocurrency business in the country stated during the meeting with Bloomberg. The Central Bank was constantly asking congress to position in relation to a crypto regulatory framework to understand the dimensions of the new business environment, as reported by the Senate news agency.
Brazil’s executive branch further decides about the bodies regulating and supervising crypto service providers. The companies then need to get the agency’s approval before starting the operation in the country.
Senate’s Proposed Bill on Brazil’s Fraud activities
The proposed bill updates Brazil’s panel code to define Virtual assets fraud as, ” organizing, offering wallets or intermediating operations involving virtual assets, securities or any financial assets in order to obtain an unlawful advantage, or misleading someone, and much more fraudulent moments of virtual assets.
The bill modifies Brazil’s penal code by two to six years of imprisonment for any fraudulent activities found on virtual assets. Further, Brazil reports the scam around 2.5 billion reals over last year according to Brazil’s Senate news service.
The bill first comes under the consideration of the lower house of Brazil, the Chamber of Deputies then passes it to Brazil’s President Jair Bolsonaro to vote. Till then The Bill has seen great progress so far without any pushback.
The Chamber had further passed another version of law aiming the cryptocurrency regulations in December. According to Brazil’s Crypto Report newsletter in February, Bolsonaro’s son Flavio vocally supports the bill, as per Portan do Bitcoin report.
The Senate’s Proposed Bill has gone through some of the hit points saying that the law is not focused on making bitcoin legal tender, and does not also include NFT’s.