Brazil law permits the use of crypto for payments
Brazil law permits the use of crypto for payments Although the signature of the President is still required. The Chamber of Deputies which is the federal legislative body in Brazil, has passed a long-awaited crypto regulatory framework that makes it acceptable to use cryptocurrency for payments everywhere in the nation.
It allows banks to start providing services in the sector and has finally been enacted by Brazil's lower house of Congress. The Bill will now be presented to President Jair Bolsonaro for signature before his term expires on December 31. The primary objective of this bill is to give control to the nation's cryptocurrency sector.
If approved, the law will mandate that all cryptocurrency exchanges and custody and management of crypto by third parties obtain licenses. The rule includes safeguards against fraud and money laundering as well as a precise description of digital assets and the companies that supply their services.
Active cryptocurrency service providers will furthermore need to open a physical office within the nation. In addition to digital currencies and air mileage programs, the bill will define payment methods supervised by the central bank. Securities tokens will be regulated by the Brazilian Securities and Exchange Commission (CVM).
The bill will include digital currencies and air mileage programs that are under the supervision of the country’s central bank.
The bill's most important requirement is that cryptocurrency service providers make a clear distinction between business and user funds. The plan also gives businesses a grace period to comply with the requirements before facing harsh fines or possibly jail time for breaking them.
The majority main banks and brokers of the country presently offer some form of exposure to cryptocurrency investments or comparable services like custody or token offers, and it currently has the most cryptocurrency ETFs in Latin America.
Brazil is placed seventh globally in terms of active users in Chainalysis' most recent Global Adoption Crypto Index. According to a recent analysis by the company, Brazil was the greatest beneficiary of bitcoin in South America between July 2021 and June 2022, receiving close to $143 billion in that time.
CBW - External Analyst