Amidst the ongoing bear market, regulators from all across the globe have been scrutinizing the Bitcoin-led industry. Brazil, however, was taking a leap into the crypto-verse with its latest regulatory framework.
According to a recent report, Brazil’s Chamber of Deputies went on to approve a bill that regulates the crypto-verse. This bill had previously attained a green signal from the Senate. However, the Chamber of Deputies remained silent about the same since April.
At present, it requires the signature of President Jair Bolsonaro for it to become law. It should be noted that President Bolsonaro’s term ends on December 31, 2022.
Through this approval, Bitcoin and its counterparts will reportedly be recognized as an asset with a value that can be employed for payments.
This long-awaited crypto bill is also expected to define crypto service providers as well. This way, the government will be able to safeguard its citizens against money laundering and crypto-related scams.
In addition to approving the bill, the executive branch is also expected to select government bodies that would monitor the market. With regard to Bitcoin and other assets being used for payments, the Central Bank of Brazil [BCB] is anticipated to take charge.
The Securities and Exchange Commission of Brazil could be the regulator overseeing the activities of the market. The aforementioned government entities along with the Federal Tax Authority would reportedly aid the central government in formulating legislation.
Will Brazil emerge as a prominent Crypto hub?
A recent report pointed out that a whopping 16 million people out of its 216 million population owned crypto.
Over the last two years, crypto ownership in the region has increased extensively. For instance, back in 2020 crypto ownership in the country was at 4.9 percent. This further surged to 7.8 percent in 2021 as mentioned earlier.
With this increase, the crypto scene in the country was certainly expanding and is expected to surge even more. Therefore, a proper regulatory framework is required for convenience and operations.