New Law on Cryptocurrencies in Brazil
2022.12.22 13:15
New Law on Cryptocurrencies in Brazil
Budrigannews.com – A bill that aims to legalize the use of cryptocurrency as a means of payment within the country has been approved by Jair Bolsonaro, the President of Brazil who will step down on December 31.
According to Bolsonaro’s office, the president of Brazil had signed into law bill 14.478 following approval from the country’s Chamber of Deputies, according to a publication of the official journal of the Brazilian federal government on December 22. The bill was sent to the president’s desk on November 29 as the final step in recognizing crypto payments by the legislature.
As is the case in El Salvador, residents of Brazil will not be able to use cryptocurrencies like Bitcoin (BTC) as legal tender in the country, as stated in the bill’s text. However, a number of digital currencies were included in the recently passed law’s definition of legal payment methods in Brazil. It also established penalties for digital asset fraud and a licensing system for virtual asset service providers.
The name of the federal agency that could be in charge of overseeing crypto payments was not mentioned in Bolsonaro’s announcement. However, just like in the United States, the Securities and Exchange Commission of Brazil regulates digital assets that are regarded as securities. The law also required exchanges to differentiate between user assets and company assets, likely in response to FTX’s demise.
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In 180 days, the crypto law will take effect, most likely in June 2023. Bolsonaro is scheduled to leave office very quickly, after which Luiz Inácio Lula da Silva, or basically ‘Lula’, will expect the administration on Jan. 1. From 2003 to 2010, Lula was Brazil’s president, and he has previously advocated for crypto and blockchain adoption.
