The largest Latin American country could soon be the latest to regulate crypto. The lawmakers hope it will increase its uses across Brazil
The Brazilian Senate is all set to vote on a bill. This bill will make the country the biggest in Latin America to regulate crypto
The crypto bill was unanimously approved by the Senate’s Economic Affairs Committee on Feb. 22, potentially increasing the chances that it will pass a vote on the Senate floor.
Moreover, the legislation states that it provides “guidelines for the provision of virtual asset services.” Brazilian Senator Irajá Abreu said on Feb. 22 that he hopes the bill will curb various financial crimes that are linkable with the Crypto.
Regulate Crypto In Brazil
“The intention of the project is to curb or restrict illegal practices, such as money laundering, tax evasion and many other crimes. There is a market that is licit, legal, which is the vast majority of this market, but there are exceptions.”
In the works for almost three years now, the bill defines various aspects of what constitutes a virtual asset (VA. A broker or exchange or arms of the Federal government would have jurisdiction over the matter.
Further, this bill defines a virtual asset as a “digital representation of value. Also, It is transferrable by electronic means and used to make payments or for investment purposes.”
According to the bill, a crypto broker or exchange is a legal entity that allows “participation in financial services and provisions,” and performs exchanges between VA and fiat currency, VA and other VA, transfer of VA, and custody of VA.
If the bill passes, it will make Brazil the largest country in Latin America to regulate crypto. Probably the most well-known LATAM nation to have such regulations is El Salvador, whose President Nayib Bukele has been vocal about his ambitions to make the country independent of U.S. dollar reliance through the use of Bitcoin (BTC).
The bill defines a virtual asset as a “digital representation of value. It is transferrable by electronic means and can be used to make payments or for investment purposes.”
