Senate Of Brazil Passes New Crypto Bill - New Legal Framework

2021-12-17 23:16:23
Brazil To Make History

The Chamber of Deputies of The Congress Of Brazil approves the new crypto Bill 2303/15, that Deputy Aureo Ribeiro proposed a while ago.

With this new legislation, Brazil should get a clear legal framework when it comes to the official use of crypto within its borders.

For that matter, this new bill will provide a definition for both cryptocurrencies and exchanges. And in order to achieve this, the Chamber of Deputies will form a central regulatory body that will oversee all crypto operations under the new legislation.

Moreover, considering that this comes from the Senate, the authority will be appointed directly by the highest echelons of the Brazilian government.

Consequently with this, the penalties for any crypto-related crimes will be also substantially higher.

One of the more interesting penalties is the punishment for crypto exchanges that are involved in providing illegal crypto portfolios for third parties.

According to the new bill, this falls under the category of embezzlement. As such, it may carry out of a prison sentence of up to eight years, plus fines.

What It Covers

However, the new bill fails to provide a definition of whether this project will have any consequences after several different assets.

This includes the international currencies, the national fiat cryptocurrencies and promotional points issued by certain businesses.

Furthermore, the legislation won’t disclose the name of the central regulator. While this is due to legal obligations, the PR of the Commission, Expedito Netto, reveals that it will most likely be the Central Bank of Brazil.

Since the Chamber of the Deputies of the Congress of Brazil approves the new crypto bill, Brazil will become one of the few countries to have crypto regulated.

Especially since after El Salvador, more and more countries are starting to ponder similar solutions. And we expect this trend to continue even stronger in 2022.

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