New draft law for cryptocurrency is presented to the Senate in Brazil - regulation
New draft law for cryptocurrency is presented to the Senate in Brazil - regulation
A new cryptocurrency law was approved by the Brazilian Congress Chamber of Deputies last week and is now waiting for the Senate for approval. If it is approved, the project would introduce a central body to regulate all cryptocurrency broker activities-supposedly the Brazilian central bank-and determine new punishments for crypto-related crimes.
Chamber of Deputies passed new crypto law in Brazil
The Chamber of MPs of the Brazil Congress has given should bring to the cryptocurrency regulation in the country. The project, identified as Bill 2303/15 and proposed by the deputy Aureo Ribeiro, determines definitions for stock exchanges and virtual currencies. It also requires a central point that supervises all cryptocurrency -based operations, which is appointed by the government's executive. The draft law is now to be presented to the Senate, which ultimately decides on the farewell.
The regulation does not name cryptocurrencies by name, but instead uses the term “virtual currencies”. However, the project makes it clear that there is no effect on the digital representation of the national Fiat currency (the real), other international currencies or the reward points of some companies in advertising campaigns. A virtual currency is defined as a value display that can be used electronically for payments or for investment purposes.
harder punishments and a central regulatory authority
The text contains specific penalties for cryptocurrency crime and determines a new punishment for stock exchanges or parties that illegally manage cryptocurrency portfolios for third parties. This crime is classified as a kind of embezzlement and would be punished with four to eight years in prison and fines.
The draft law provides for a central regulatory authority, but cannot explicitly name it for legal reasons. Expedito Netto, the commission's rapporteur who bears the law, said that this body will probably be the country's central bank.
In the event of approval, Brazil would join a group of countries in Latam that have special rules for cryptocurrency plants that are classified, unlike other similar systems. El Salvador is one of these countries that recently approved its so-called "Bitcoin Act". Definition Bitcoin as a legal means of payment in the country.
also Paraguay took steps in this direction, Introduce a law for regulation of Cryptocurrencies in July. However, the legislation aims to introduce checks for crypto transactions, and does not consider Bitcoin as a currency, but as a goods.
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