The bill doesn’t make BTC an official means of payment, but it creates a legal framework for regulating cryptocurrencies in the country.
In Brazil, the Senate approved the first bill concerning the crypto regulation. This initiative will eventually become the foundation of the regulatory framework for the cryptocurrency industry. The proposal approved by the Senate combines PL 2303/15 and PL 3825/2019 and is called the “Bitcoin Law.”
Before the law enters into force, it must be approved by the Chamber of Deputies and then signed off by President Jair Bolsonaro. This is expected to happen before the end of 2022. The bill has been under consideration since 2015, when PL 2303/15 was proposed by Federal Deputy Aureo Ribeiro.
The bill proposes that the regulator of the cryptocurrency market will be the executive branch, which could eventually create a new regulatory body or divide these responsibilities between the Securities and Exchange Commission (CVM) and the Central Bank of Brazil (BCB). Tax exemption is also expected for the import of ASIC mining devices into the country in order to stimulate the industry.
Taxation of crypto transactions has been considered, as Rio de Janeiro and other big cities have already announced their desire to accept BTC and other crypto-assets as legal tender to pay for all kinds of services, such as cabs. Nevertheless, Bitcoin will not become an official means of payment, and its application areas will be limited.
Besides, lawmakers paid special attention to financial fraud using cryptocurrency assets — the penalties for such crimes will be proportional to the damage caused and may involve penalties ranging from paying fines to eight years in prison.
Recall that earlier the President of the Central Bank of Brazil (BCB) said that the CBDC pilot project would be launched in the second half of 2022.