Brazilian Parliament Approves Bill for Greater Cryptocurrency Regulation, What Does That Mean?

The lower house of the Brazilian Parliament has approved a cryptocurrency bill aimed at creating a strict regulatory framework in the country, a topic that has resonated with many governments around the world following the collapse of FTX. Now the legislation has been sent to President Jair Bolsonaro for his approval.

The bill makes it necessary, among other things, that crypto companies operating in the country be registered and have physical offices and media outlets reports He said.

Brazil in Seventh place In the Chainalysis 2022 Global Cryptocurrency Adoption Index.

Brazil’s new cryptocurrency regulation bill

Brazil’s Chamber of Deputies passed a bill to regulate cryptocurrencies on Tuesday, giving the country the ability to exercise greater control over the sector. It paves the way for the designation of a federal agency that will regulate companies that manage virtual assets.

The bill requires crypto companies operating in the country to be subject to the new laws, which impose fines and prison sentences for violations, by having offices in the country.

Applies to legal entities that provide transfer of digital assets or conversion of digital assets into local or foreign currencies. Financial services involving virtual assets also fall under the proposed law.

The Brazilian Chamber of Deputies is a federal legislative body and the lower house of the country’s National Congress. It has more weight when it comes to passing laws, and under local law, President Bolsonaro can either approve or veto the bill without rejecting it outright.

Call for similar laws in other countries

Proposed Brazilian law to strictly regulate the cryptocurrency sector reflects The growing need for such laws in many jurisdictions. For example, the Indonesian parliament is debating a similar bill that proposes to have a comprehensive legal framework to regulate cryptocurrency trading and transactions in the country.

Recently, Indonesian Finance Minister Sri Mulyani Indrawati said that the proposed law would place the cryptocurrency sector under the jurisdiction of the Financial Supervision Authority (OJK). Currently, it is managed by the Commodity Futures Trading Regulatory Agency.

Not just because of the downfall of crypto companies

The common thing is that governments and regulators are worried about the rapid collapse of several leading companies in recent months, and are therefore seeking more oversight and scrutiny in the cryptocurrency sector. Some want tougher regulation too, in recognition of the critical role digital assets play in the global financial system and that they can be misused.

They believe that the possibility of illegal activities involving digital assets should be prevented through the institutionalization of collateral. at the beginning of this month, encrypted potatoes You mentioned how Canada is seeking to accelerate regulation for this sector in light of these considerations.

The Brazilian Parliament After Passing A Bill For Greater Regulation Of Cryptocurrency, What Does It Mean? It first appeared on CryptoPotato.

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