Brazil: Senate bill aims to legalize digital currencies

Brazil is set to become the latest country in Latin America to legally recognize digital currencies, with a new pro-Bitcoin bill submitted to the Senate for approval. The bill has been in the works for three years now and will regulate everyday uses of digital assets.

First introduced in 2019, the invoice was unanimously approved by the Senate Economic Affairs Committee (CAE) this week. It was then sent to the plenary of the Senate, and if it sails, it will be sent to the Chamber of Deputies. After that, President Jair Bolsonaro will sign it next, making Brazil the last and largest country in Latin America to recognize Bitcoin. However, the president can also veto the bill and send it back to parliament.

If enacted, it will formally recognize virtual currencies as “digital representations of value that can be exchanged or transferred by electronic means and used to make payments or for investment purposes.”

This will allow Brazilians to make payments in Bitcoin, a privilege that many countries, most recently India, have refused to grant the digital currency. India is moving towards legalizing bitcoin as an asset, saying allowing it to be used as currency could destabilize the local economy.

Brazil will also recognize Virtual Asset Service Providers (VASPs), with the government licensing all Bitcoin businesses. Once registered, they will have to abide by a strict code of conduct which includes the obligation to inform the Brazilian Council for the Control of Financial Activities in the event of a suspected money laundering transaction.

The bill will also remove market jurisdiction from the Securities and Exchange Commission (SEC), which has played a prominent role in overseeing the industry. He recommends that the tax agency known as Receita Federal and the central bank be jointly in charge of the industry.

“With regulation, cryptocurrency will become even more popular. Once this regulation is approved, the trend is that it will be adopted more and more in the supermarket, in commerce, in a car dealership,” said Senator Iraja Abreu. commented.

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Norman D. Briggs