Legislators in Brazil have voted in support of a plan that would legalise and regulate cryptocurrencies. According to media sources, the Senate approved the measure on Wednesday.
Brazil’s strategy for regulating the digital asset business may be seen in the specifics of the proposed crypto-focused legislation that have been proposed. If virtual assets are to be governed by the executive branch of government, legislators believe that this should be the case.
As a result, this body may vote on new legislation to protect investor safety and policy compliance while encouraging innovation in Brazil’s digital economy.
If no separate agency is set up to oversee the crypto market, Senators urged that the country’s Securities and Exchange Commission (SEC) take on the role of the market regulator. The Central Bank of Brazil was also mentioned in the law as a possible regulator of digital assets.
In addition, the measure apparently wants to exclude Bitcoin miners who want to import specialised ASIC mining rigs from paying import duties. Legislators expect that the regulation would foster the formation of crypto-powered institutional bodies in the nation from both inside and outside the country.
In the end, a politician named Senator Arns proposed a punishment mechanism for defaulters and illegal actors. Senator Arns. The legislator suggested:
In this sort of crime, the sanctions must be commensurate to the amount of damage done. People who conduct crimes that cost $1 billion and inflict significant harm on others will face harsher penalties than those who commit crimes that cost just a few hundred thousand dollars.
The crypto measure has received the go-ahead from Brazil’s Senate and now heads to the lower house of Congress. The parliament is expected to vote in favour of the measure, and proponents believe that President Jair Bolsonaro will sign it into law by the end of 2022.
Earlier this year, Federal Deputy Aureao Ribeiro proposed a set of policies for the country’s crypto industry. It wasn’t until years later that Senate President Rodrigo Pacheco presented the concept that the plan gained traction.
As the use of cryptocurrencies grows, more countries are looking at establishing regulations to govern them.
Cryptocurrency legislation in Brazil has joined a growing list of nations that are creating them. President Joe Biden recently signed an executive order aimed at developing the framework for digital assets in the United States.
Geopolitical tension between Russia and Ukraine continues to force Ukraine to legalise Bitcoin and other cryptocurrencies under its Virtual Asset Law.
Also Read: Crypto Users In Europe Prefer Decentralized Services, Bank Of Spain Says
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