Brazilian Congress Aims to Pass Unified Crypto Framework in Coming Months – Before the end of Q2, the Brazilian Congress has the intention of passing a definitive law regulating cryptocurrencies. According to local media, the rapporteurs of two separate proposals aimed at regulating crypto interactions in the country would integrate the two texts to provide a united version. This text will be prepared by Senators Iraja Abreu and Deputy Aureo Ribeiro, and it is expected to be approved later this month.
Abreu has already integrated three suggestions and will urge the Senate to review and adopt these two new measures (one in the Chamber of Deputies and one in the Senate). According to Abreu:
“I’m working with the Chamber’s rapporteur, who has done an excellent job. The Central Bank’s technical staff has indeed been quite helpful. The texts will be integrated into a single document because they are comparable.”
Also Read: Cryptocurrencies Carry Systemic Risks, Threaten Ruble, Bank of Russia Insists
According to the senator, a clear and proven cryptocurrency legal framework suited to the Financial Action Task Force’s recommendations will make this industry more investor-friendly for all those interested in Brazil.
He elaborated:
“There is a market desire for a safer business environment, as well as the necessity for criminal classification to avoid fraud, in addition to aligning Brazil with international agreements.”
The tremendous volume of fraudulent activity related to cryptocurrencies is one of the driving forces behind this rule. According to reports, the cryptocurrency markets are worth over R$130 billion (around $27.6 billion) annually, with R$6.5 billion (roughly $1.38 billion) in fraudulent activity.
Also Read: Russian Finance Ministry Amends Bill On Digital Currency – Adds Crypto Mining Provisions
Indeed, the goal of this project is to include a description of cryptocurrency-related fraud in the Brazilian penal code, with penalties ranging from four to eight years in prison depending on the gravity of the crime.
Mining is also given specific attention in the initiative, with incentives for green mining operations included. This means that mining projects that use green energy will be eligible for tax breaks. According to Abreu:
“Brazil has the potential to evolve as the world’s next green mining capital. The objective is to do this.”