Brazil’s Crypto Bill One Step Closer to Becoming Law: Details
Brazil is one of several countries that wish to contribute to the global crypto sector by experimenting with it under safe legal regulations. Brazil’s crypto bill, which aims to strengthen licensing requirements for industry players among other proposals, has received long-awaited approval from Brazil’s Chamber of Deputies. This brings the bill closer to becoming a law after being approved by the executive branch of finance. The bill was written by deputy Aureo Ribeiro.
The number of firms holding crypto assets touched a record high of 12,053 in Brazil this year. The country’s tax authority, Receita Federal do Brasil (RFB), published a report in October, acknowledging a six percent increase in the 11,360 companies that had declared they held crypto in July this year.
Amid the expansion of the digital goods sector, it is natural for the Brazilian government to accelerate efforts to regulate the industry.
The bill proposes to establish an internal committee to keep the crypto industry in check. The body also plans to create a mandate for crypto firms to obtain a ‘virtual service provider’ license before starting operations in the country.
Bitcoin, followed by stablecoin Tether are the two most popular cryptocurrencies owned by Brazilian entities, RFB said in its findings two months ago.
Once the bill receives the final approvals needed to pass, existing crypto companies in Brazil will be given 180 days to align their processes according to the laws.
In May, Nubank, Brazil’s largest bank by market capitalization, began offering Bitcoin and Ether for purchase or sale on its platform. Nubank’s decision was motivated by the increasing number of crypto investors in the region.
Earlier this year, Rio de Janeiro announced that starting in 2023, it will allow its citizens to pay property taxes in the form of cryptocurrencies.
Amidst the rise of crypto activity, Brazil has already started involving law enforcement agencies to protect the crypto sector.
A special investigation unit, dedicated to the crypto industry, was also established in July this year by the public prosecution office of Brazil’s central-west region.
This unit includes members of the civil service, law enforcement and police.
As part of its crypto laws, Brazil focuses on establishing appropriate fines and prison sentences for those who misuse crypto currency for money laundering, fraud, and other collar crimes.