Historic Brazilian Bill Regulating Crypto Heads to Senate Vote

Following approval by the Senate plenary, the bill will need to pass Brazil’s lower house before President Bolsonaro vetos or approves

article-image

Brazilian Congress | Source: Shutterstock

share

key takeaways

  • Brazil’s Senate will vote on a bill that seeks to regulate crypto throughout Latin America’s largest economy
  • Supervision and inspection of digital assets will be handled by the country’s central bank

Brazil’s Senate is set to vote on a bill aiming to regulate and legitimize digital assets throughout Latin America’s largest economy.

Bill 3825/2019 — which heads to a vote after clearing the country’s economic affairs committee on Tuesday — proposes regulatory guidelines for Brazil’s digital asset market, including an exchange licensing regime.

Introduced by Senator Flávio Arns, the bill specifically seeks to regulate services related to operations carried out with crypto on electronic trading platforms. It marks the first time such a bill is being considered in South America.

Supervision and inspection of digital assets will be handled by the country’s central bank, the bill reads. The Comissao de Valores Mobiliarios (Brazil’s Securities and Exchange Commission) will be charged with overseeing initial coin offerings.

The aim of the bill, proponents claim, is to regulate crypto-related crime and bring the unregulated market under the gaze of financial watchdogs in an attempt to monetize and police the budding industry. The guidelines draw up exact definitions of what constitutes virtual asset service providers, such as exchanges, and what constitutes crypto.

Measures to combat money laundering and other illegal activity, as well as penalties being applied to “fraudulent” or “reckless management” of crypto exchanges, are also being considered in the proposed legislation.

Following approval by the Senate plenary, the bill will need to be ratified by the Brazilian Chamber of Deputies — the country’s lower house, composed of representatives of all Brazilian states and the federal district. From there, President Jair Bolsonaro can choose to approve or veto the bill.

“The world is not waiting for the laggards,” said Rafael Bezerra, director of supervision at Brazil’s Financial Activities Control Council in a video. “It is important that we do not place ourselves among them in the near future.”

Last year, El Salvador moved to legalize bitcoin as legal tender alongside its national currency and the US dollar. The country’s president, Nayib Bukele, has been vocal about detaching his nation’s dependence on foreign interference in the country’s crypto decisions.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit