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The bill is now ready to become law after the President’s signature.
The long wait is finally over, as the Chamber of Deputies approved Brazil’s crypto bill seeking to regulate the country’s crypto space. The move comes after the bill was stuck in the House since April, when it was initially cleared by the Senate. according to a reuter report goodIt was important for Congress to support the bill as it would help keep the crypto industry clean.
Brazilian crypto bill aims to protect investors
The bill, which was proposed by deputy Aureio Ribeiro, calls for a regulatory mandate for Brazil that would ensure investor funds are well protected. To do this, part of the bill proposes that a government-appointed federal agency would perform oversight duties for the entire territory. The bill proposes that crypto assets considered as securities should be regulated by the Brazilian Securities and Exchange Commission (CVM). However, it also suggests that another regulator be appointed by the President for digital assets that are not securities. However, there are expectations that the Central Bank is likely to be chosen for that role.
In addition, the Bill also proposes to define who can be termed as ‘offenders’ in the conduct of Virtual Service Providers. These include failure to obtain an operating license or indulging in fraudulent activities of any kind. The new rules also cover businesses in the industry that have at least one branch in a physical location within the country. Those violating any rule will be required to pay a fine or even serve a jail term in the worst case scenario.
For now, though, the rules have yet to be passed into law. It is pending the final stage of ratification, at which point outgoing President Jair Bolsonaro will sign it and become law.
Grace period extends gesture between FTX briefs
For what it’s worth though, it can be difficult for exchanges, businesses and private individuals who may be affected to comply with these regulations. Therefore, a grace period of 180 days has been prescribed to allow them to get their houses in order. It is only after the window that regulators will start implementing the new rules.
It should be noted that recently Collapse of giant crypto exchange FTX The increased rate of global regulatory approval may have played a role. This is because lawmakers and regulators continue to seek ways to secure investor funds without stifling technological innovation.
Maiowa is a crypto enthusiast/writer whose conversational character is quite evident in his writing style. He firmly believes in the potential of digital assets and takes every opportunity to reiterate this. He is also an avid reader, a researcher, an astute speaker and a budding entrepreneur. However, away from crypto, Mayowa’s distractions include discussing soccer or world politics.
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