Based on Cointelegraph Brazil, the regulation regulating the cryptocurrency market in Brazil is predicted to be handed by the Nationwide Congress within the first half of this 12 months.
The regulation, which has been debated within the Chamber of Deputies since 2015, was permitted within the first spherical of consideration. The Senate connected it to a different crypto-focused invoice that has already been permitted by the Senate Financial Committee.
Two lawmakers, Senator Irajá Abreu and MP Aureo Ribeiro, each rapporteurs on the above proposals of their respective legislative chambers, are drafting a unified authorized textual content that will likely be despatched to the Senate for a full vote.
“I’m involved with the Chamber’s rapporteur, who has carried out an excellent job. The technical staff on the central financial institution was additionally very useful. The texts are related and merged into one,” Senator Irajá stated.
Irajá additionally famous that Senate President Rodrigo Pacheco is predicted to convey the unified invoice to a plenary vote in April. He stated:
“By bringing the tasks collectively, we’ve expedited the approval of this cryptocurrency milestone. There’s a market demand for a safer enterprise setting and the necessity for prison classification to keep away from fraud, along with Brazil’s alignment with worldwide agreements.”
Passing the invoice in plenary is not going to make bitcoin authorized tender in Brazil, as it’s in El Salvador.
The proposed regulation would enable the Brazilian president to designate a federal company answerable for setting cryptocurrency guidelines. The President would both create a brand new regulator or delegate that function to the Nationwide Securities and Trade Fee (CVM) or the Central Financial institution of Brazil (BC).
The regulator will likely be answerable for defining market insurance policies and establishing norms according to worldwide requirements to stop cash laundering and asset concealment.
The invoice additionally carries a penalty of 4 to eight years in jail, along with a high-quality for these discovered responsible of fraud within the provision of digital asset companies.
One other level highlighted within the invoice is a set of incentives for crypto miners to ascertain themselves in Brazil. It proposes exempting the import of ASICs into the nation from taxes. Nevertheless, that may not be sufficient to draw bitcoin miners to the nation, on condition that Brazil’s vitality costs are among the many highest in South America and about 5 occasions greater than nations like Paraguay and Venezuela.