Brazil Moves to Regulate Local Crypto Market
Brazil on Tuesday laid the groundwork to regulate the country's cryptocurrency market, giving the green light to a bill that provides guidelines for virtual assets. The Brazilian Senate's Economic Affairs Committee unanimously approved the crypto bill, paving the way for a vote on the Senate floor, followed by the lower house. If the bill successfully passes through National Congress, President Jair Bolsonaro will consider signing the legislation into law.
The implementation of crypto regulation in Brazil would see Latin America's largest country join others in the region setting clear guidelines and rules governing the emerging asset class. El Salvador famously became the first country in the world to recognize Bitcoin as legal tender in September 2021, even giving citizens $30 in Bitcoin for downloading its national digital wallet.Meanwhile, Cuba last year announced that it plans to recognize and regulate cryptocurrencies such as Bitcoin, citing «reasons of socio-economic interest.»
The proposed bill starts with the basics, such as defining what virtual assets are and outlining the responsibilities of crypto service providers. It also proposes that the federal government determine which body enforces crypto regulations—expected to be the Central Bank of Brazil (BCB), according to Senator Irajá Abreu, the draft's rapporteur.
Abreu, who initially proposed the bill in 2019, told Bloomberg that the bill's successful passage would see increasing adoption and popularity of cryptocurrencies in the country. «Once this regulation is approved, the trend is that it will be increasingly adopted in the supermarket, in commerce, in a car dealership,» he said.
FinTech blockchain startup TripleA estimates that 4.9% of Brazilians own
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