The whole of Brazil welcomed the senate’s decision to approve the first cryptocurrency bill yesterday.
Based on the bill, it will in turn lead to the stage of introduction of a regulatory framework for the entire crypto industry in the country.
However it still needs approval from the House of Deputies before being handed over to Brazilian president Jair Bolsonaro to be upheld as a valid crypto law.
This process is expected to end by the end of 2022.
Here are the simple facts you need to know:
1/ The bill was introduced by federal deputy, Aureo Ribeiro for the first time in 2015.
2/ After lengthy discussions on Tuesday, the senate finally approved the bill.
3/ The bill passed by Senator Iraja Abreu is the result of a combination of proposals from Senator Ribeiro with the proposals of Senator Arn.
4/ The country’s executive division is responsible for enforcing crypto laws either creating a new supervisory team or delegating its powers to the Brazilian Securities and Exchange Commission (SEC) (CVM) or the Brazilian central bank.
5/ The bill also details the penalties imposed for criminal activities related to cryptocurrencies, encompassing them in the categories of fraud, money laundering, and any related crimes.
6/ There is a potential for incentives for crypto miners to set foot in Brazil as a complete tax exemption for the importation of ASIC devices will be introduced.
It seems easy that Brazil wants to introduce the crypto industry.
In contrast to India, the direction of the crypto sector is still unclear, causing Coinbase to be stuck. So is El Salvador which is facing opposition from various angles.
This is a reminder to Singapore that it also agrees with the implementation of clear crypto laws as it shows an uneasy responsibility in risk management.
