Brazilian Senate Approves Cryptocurrency Law Project – The Brazilian Senate has endorsed a recently proposed cryptocurrency policy, moving the idea to the deputy chamber for discussion. To become a law, the idea must be adopted by the members of Congress and signed by President Jair Bolsonaro. The presented concept is the product of the merging of many crypto-law efforts.
The Brazilian Senate has approved a cryptocurrency law that aims to provide greater clarity and safeguard users from various cryptocurrency-related scams that have occurred in Brazil. The initiative will now go before the Chamber of Deputies, which will debate it and decide whether to approve or reject it.
The idea was developed by combining elements from several previous initiatives, taking some from one and some from another. Senators Flávio Arns, Soraya Thronicke, Styvenson Valentim, and Aureo Ribeiro, a federal deputy, all contributed to the final draft.
This was previously reported by local media, which stated that the institution was working to get a cryptocurrency law approved by the end of Q2.
Iraja Abreu, the rapporteur, stated during the discussion:”We expedited the report’s deliberations so that we could ultimately vote on this issue of crypto asset regulation today.
The central bank was continuously pressuring Congress to position itself in regard to a regulatory framework that could grasp the scope of this new business environment.
The Brazilian senate adopted a cryptocurrency law proposal that defines the notion of cryptocurrencies and virtual asset service providers but gives the Executive branch of government the authority to name the agency that will regulate them.
This faculty was previously assigned to the Central Bank of Brazil in previous iterations of the project. The executive arm of government will be able to delegate certain responsibilities to an existing organization or construct a new one specifically for this purpose.
Because of their unique characteristics, non-fungible tokens (NFTs) were left out of the scope of the regulation, and their regulation was left to another legal project.
The document does, however, update the country’s penal code to include a new crime called “fraud in the provision of services of virtual assets, securities, or financial assets,” with penalties ranging from two to six years in prison and fines.
In addition, the document recommends tax benefits for crypto mining operations which use 100 percent renewable energy and are carbon neutral.