Brazil approves legislation legalising crypto as a form of payment

The bill was passed by the Chamber of Deputies of Brazil, but it still needs the approval of the executive branch before it can be implemented.

The Brazilian Chamber of Deputies, a federal legislative body, has approved a regulatory framework that authorizes the use of cryptocurrencies as a payment mechanism inside the nation. While this is a huge step forward for crypto in Brazil, the bill still needs the president’s signature to become effective.

The bill’s passage does not make any cryptocurrency legal money in the United States. However, digital currencies and air miles programs will be included in the bill’s definition of payment methods regulated by the central bank.

After a bill becomes law, the executive arm of the government must choose which office will be responsible for its oversight. Tokens that will be regarded as securities will continue to fall within the Brazilian Securities and Exchange Commission’s authority.

In addition to identifying crypto as a payment mechanism, the legislation permits the issuance of licenses for crypto exchange platforms and for third-party custody and administration of crypto. In order to prevent a repeat of the FTX collapse, the rule would also compel exchanges to draw a clear difference between business and user assets.

In June, a similar proposal was filed to enable Brazilians to utilize crypto as a payment method and to prevent judges from seizing their private keys. The idea intends to make crypto assets a medium of exchange and an “access mechanism” for products, services, and investments.

Thiago César, CEO of Transfero Group, a company with deep ties to the Brazilian crypto ecosystem, says that although the FTX collapse has affected several industries within the crypto field, it will not impact Brazilians’ usage of crypto in their daily lives.

Also Read: Binance Purchases A Licenced Japanese Cryptocurrency Exchange