The upper house of the National Congress of Brazil has passed a bill that provides a regulatory framework for the legalization of cryptocurrency in the country.
The Federal Senate passed the bill which defines virtual assets as the ‘digital representation of value that can be traded or transferred electronically, including making payments and investments.’
The bill, created by Senator Flávio Arns, will now go on to the Chamber of Deputies. It will become live after it obtains the signature of President Bolsonaro, which could be before the end of 2022.
The bill states that local crypto providers should be allowed to operate in Brazil. The providers will need to obtain a license from the Federal Public Administration or entity to do so.
The lawmakers believe that the country’s securities and exchange commission can work as the regulator of the crypto industry. Another body considered for the role of regulator is the Central Bank of Brazil.
The bill also proposes an exemption from import fee for crypto machinery and tools that use electricity from renewable resources and neutralize all of the greenhouse gases emitted in the process, until the end of 2029. This exemption, the lawmakers hope, will encourage the establishment of crypto institutions in the country.
The bill outlines two to six years of imprisonment and a cash fine for those who conduct illegal activities in this industry. Consumer Protection Code will also be applied to the crypto market, wherever possible.
The bill might undergo several amendments before becoming the law.
Brazil has been working on the crypto front for quite some time. The Central Bank of Brazil has chosen nine projects to aid in the development of ‘Real Digital’, a Central Bank Digital Currency (CBDC).
Brazil is not the only country focusing on developing a crypto framework. In the wake of the Russian attack on Ukraine and the subsequent role played by crypto in providing monetary support to both countries, the rest of the world is forced to develop and regulate this industry.
In another part of the world, The Central African Republic (CAF) became the first African country to adopt Bitcoin as legal tender. The decision was made to restore the country’s economy.
