Brazilian Senate Approves ‘Bitcoin Law’ to Regulate Cryptocurrencies

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2022-05-01 07:47:22

It was a historic day for crypto in Brazil, as the Senate finally passed the country’s first bill aimed at regulating the crypto market. The bill still needs to pass the House of Representatives and then be sanctioned by President Jair Bolsonaro.

Brazil’s Senate has passed the country’s first bill to regulate cryptocurrencies in a plenary session, which will set the stage for the creation of a regulatory framework for the country’s cryptocurrency industry. .

The bill must be passed by the House of Representatives and then signed into law by President Jair Bolsonaro to become law in the country. This is expected to happen by the end of 2022, according to experts who spoke to Cointelegraph Brazil.

The project approval session was chaired by Senate President Rodrigo Pacheco, who said:

“I would like to congratulate the project’s rapporteur, Senator Irajá, on the adoption, at the Plenary Session of the Senate, of this important bill.”
Federal Deputy Minister Aureo Ribeiro first proposed the bill in 2015.

The bill was then passed in the Senate after lengthy deliberations on April 26, combining Senator Ribeiro’s bill with Senator Arns’ bill PL 3825/2019 which Senator Irajá Abreu is a reporter.

During the session, the Senate confirmed that the country’s executive branch would be responsible for formulating rules for crypto assets and could create a new regulatory body or authorize the Securities and Exchange Commission. and Transactions (CVM) or Central Bank of Brazil (BC).

The session also saw a number of senators including the bill’s author, Senator Arns, focus on discussing appropriate penalties for crypto crimes, especially fraud.

According to Senator Arns, the penalties for this type of crime should be scaled up according to the amount of fraud, money laundering and other white-collar crimes committed. He say:

“The penalties should be commensurate with the amount of value affected by this type of crime. So whoever commits a $1 billion crime that causes thousands of people damage will have a larger penalty than someone who is less affected. more valuable.”
Senator Arns’ proposal is backed by Senator Rose de Freitas, who has called for greater penalties for crypto-related crimes and said that the Brazilian market has moved over $40 billion la in Brazil.

The senators also discussed encouraging crypto miners to open stores in Brazil as there would be a complete tax exemption for the import of ASIC mining equipment into the country.

Bernardo Schucman, Senior Vice President of Cryptocurrency Division of American Mining Company CleanSpark, pointed out that the crypto market needs specific regulation so that risk-averse institutional investors feel Get incentivized and protected by investing in cryptocurrency mining in South America’s largest country. He say

“Regulation is very welcome [và] the trend is that Brazil will follow the biggest economies in the world and facilitate the mining of these coins on Brazilian soil.”

The bill is unlikely to face many challenges in the House of Representatives, where it must pass in a plenary session before being sent to President Bolsinaro before becoming law.

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