Brazil’s Parliament Passes Bitcoin Bill, Moving It Up To Senate

Source: Medium

The Brazilian Parliament, through its Chamber of Deputies, has assented to a bill that will regulate companies with operations in cryptocurrency. The bill, which was first brought up by Aureo Ribeiro, a Brazilian federal deputy, also seeks to clarify which bodies will be responsible for the regulation of cryptocurrency in the country.

Speaking at an interview with the channel; Rodrix Digital Dash Brasil Áureo makes it clear that the bill is a project he has worked on since 2015. “In 2015, no one knew what crypto-economics was,” said Aureo. Presently, the congressman feels that come March 2022 Brazil will have fully defined regulations to run crypto markets.

As such, he explains during the interview that it was necessary to; “Create an understanding with the Central Bank, the Federal Revenue and other bodies”. This “understanding” means getting the various bodies on the same page over what the bill was really about.

What Is Brazil’s Crypto Regulation Bill About?

Part of what was proposed sounded very stringent. A text written in Portuguese and posted on Brazil’s congressional website hinted at this. The text said that the bill would force “virtual asset service providers to follow rules of communication of financial transactions, with identification of customers and recordkeeping,”

Brazil’s House of Representatives already approved a similar bill on September 29th. This approved bill aims to increase penalties for crypto-related criminal activities. It is also likely that Aureo’s bill will lobby for the hefty penalization of money laundering activities related to virtual currencies.

Presently, Brazil’s money laundering penalty dictates imprisonment for a period of three to ten years. The jail term is also accompanied by a fine. This is according to the Chamber’s website. If this new bill also gets the support of the Senate, crypto fraud penalties will now deserve a four to 16-year jail term as well as a fine.

Besides that, Ribeiro’s bill also targets an extensive series of companies offering crypto-centered services. This includes everything from financial institutions that help people hold cryptocurrencies, to crypto exchanges that facilitate buying and selling.

According to the bill;“only institutions authorized to operate by the Central Bank of Brazil may exclusively provide the service of virtual assets, or accumulate it with other activities.” The Chamber’s website then emphasizes that, “This will occur within the framework of a regulation issued by an agency or entity chosen by the executive branch of the country.”

Why Brazilian Government Is Tightening Crypto Regulation

This bill comes at a time when many Brazilians are trying their luck at crypto investments. João Manoel Pinho de Mello who is director of the Central Bank of Brazil (BCB) sees the imminent growth of cryptocurrency. He believes there will be a massive migration from paper currency to digital currency over the next few years. This could perhaps explain the heightened legal measures surrounding virtual currencies in the country.