Brazil’s first Bitcoin law receives a green signal from Senate

Sahana Kiran
Source – Pixabay

The world’s largest cryptocurrency, Bitcoin [BTC] is being widely adopted by governments across the globe. While some are still regulating it, a few others have given the coin a legal stature. Brazil was taking things slow and decided to regulate the market first. Earlier today, Brazil’s Senate made history by bypassing the country’s very first bill that aids in the regulation of cryptocurrencies.

The bill was first proposed back in 2015 by the Federal Deputy Aureo Ribeiro. Years later, during a session preceded by Senate President Rodrigo Pacheco, the Bitcoin law managed to garner clarity. Speaking about the same, Pacheco said,

“I want to congratulate the rapporteur of the project, Senator Irajá, for the approval, here in the Plenary of the Senate, for this important bill.”

Furthermore, a thumbs up from the Senate wasn’t enough for the Bitcoin law to be put into action. The bill must further garner a green signal from the Chamber of Deputies following which President Jair Bolsonaro will sign it off. This law would reportedly become reality by the end of the year.

Brazil’s Bitcoin bill

The emergence of Bitcoin and other cryptocurrencies post-pandemic has forced governments to adhere to the demand and regulate the market. Brazil did not want to be late to the crypto party hence the process of governing the market went off in full spree. The Senate went over an array of things before passing the bill.

The government would set up an executive branch that would oversee the process of drafting rules for the crypto market. If no new regulator is formed, the Securities and Exchange Commission of the region or the Central Bank of Brazil would likely take the responsibility. In addition to this, crypto miners wouldn’t have to cough up a hefty tax on the import of ASIC mining equipment.

Furthermore, the penalties and repercussions of working around the imminent Bitcoin-centric regulations were also highlighted during the Senate session. Senator Arns went on to pitch his idea with regard to penalties. He added,

“The penalties must be proportionate to the amount of value affected by this type of crime. So whoever committed a crime of US $1 billion causing damage to thousands of people would have a greater penalty than the someone who affected less value.”