It’s a momentous day for crypto users in Brazil, as the Senate has finally adopted its first legislation to regulate the crypto sector. This has to be adopted by the Chamber of Deputies and then signed into law by the President, Jair Bolsonaro.
Brazil Embraces Crypto Regulation
In a parliamentary session, Brazil’s Senate approved the nation’s first cryptocurrency law, paving the way to construct a legal framework for crypto business in the country. For the bill to become law in the nation, it has to be passed by the Chamber of Deputies before the President will sign it. According to specialists that talked with Cointelegraph, this is predicted to happen before the year ends.
President of the Senate, Rodrigo Pacheco presided over the meeting that authorized the proposal, saying:
“I would like to salute the project’s rapporteur, Sen. Irajá, for the passage of this significant law in the Senate Plenary.”
Aureo Ribeiro, a Federal Deputy, originally submitted the law in 2015. After extensive consideration, the law was eventually adopted on the 26th of April, merging Sen. Ribeiro’s proposal with that of Sen. Arns titled PL 3825/2019. Sen. Irajá Abreu served as rapporteur for the passage of the bill.
During the debate, the Senate affirmed that the nation’s executive arm would take charge of developing crypto-asset legislation, with the option of creating a new regulatory agency or delegating authority to the Central Bank of Brazil (BC) or the Securities and Exchange Commission (CVM). Furthermore, many Senators, including the author of the bill, Senator Arns, focused on appropriate sanctions for cryptocurrency crimes, particularly fraud.
Sen. Arns and Sen. Rose de Freitas believes that the penalty for this sort of crime must be proportionate to the intensity of the money laundering, fraud, and other white-collar crimes committed. Arns stated that:
“The sanctions must be proportional to the amount lost due to this sort of crime. So, somebody who committed fraud worth $1 billion and harmed thousands would face a worse sentence than a person who harmed less.”
Brazil Plans To Attract Crypto Miners
The Senators also considered enticing cryptocurrency miners to set up business in the country since the importation of ASIC mining gear into the nation would be tax-free. According to the VP of US mining firm, CleanSpark, Bernardo Schucman, the crypto market requires specific regulations to protect and encourage risk averters investors to invest in the cryptocurrency mining sector. He stated that;
“Regulation is extremely welcome, and also the plan is for the country to join the world’s greatest economies and encourage mining of digital currencies.”
The legislation may not encounter any obstacles in the Chamber of Deputies before delivering to the President. Before the end of 2022, Brazil would have officially released a proper regulatory framework for crypto usage.