Brazilian Senate passes bill to regulate cryptocurrency transactions
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Answer Brazilian Senate passes bill to regulate cryptocurrency transactions
The bill, introduced by Senator Flavio Arens, has been moved to the Brazilian Chamber of Deputies for a vote.
If the bill is approved, the executive branch will have the power to veto it.
At the same time, the executive will have the ability to determine which regulators will have the authority to supervise crypto service providers.
According to the bill, the country’s central bank will most likely be responsible for regulating the cryptocurrency sector.
Rapporteur of the bill, Iraja Abreu, stated:
We have advanced the discussions of the report so that we can finally vote here today on this matter of regulating virtual assets, which some call cryptocurrencies and is a very important and urgent matter.
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The bill includes anti-money laundering:
The bill consists of inputs from three other bills in the Brazilian Congress, and could pave the way for a broader regulatory framework.
With the pace of development in this sector, the need for crypto regulations has become more and more important and necessary.
For Brazil, such laws will be very important, given that it is the largest market in Latin America.
Between June 2020 and July 2021, the volume of cryptocurrency transactions in Brazil amounted to about $91 billion, according to Chainalysis.
The law will require cryptocurrency service providers to follow certain guidelines on protecting customer data and money.
Additionally, anti-money laundering practices will also be part of the standard requirements.
Brazil is also one of the largest markets in the region for scams.
Last year, there were an estimated $503 million (2.5 billion riyals) of cryptocurrency scams.
The new bill fails to provide the necessary regulatory clarity that can help reduce such cases.
So other amendments to the penal code include providing prison terms and fines for fraud with digital assets.
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Currently, prison terms of two to six years are less than suggested in an earlier version of the bill, which recommended four to eight years.
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