Brazil’s Senate approves ‘Bitcoin law’ to regulate cryptocurrencies

Brazil’s Senate approves 'Bitcoin law' to regulate cryptocurrencies

Brazil’s Senate passed its first bill on cryptocurrency regulation in plenary session. This will allow for the establishment of a regulatory framework to regulate the country’s crypto sector.

To become law in Brazil, the bill must be approved first by the Chamber of Deputies then by President Jair Bolsonaro. Experts speaking with Cointelegraph Brazil predict that this will happen by the end 2022.

Rodrigo Pacheco, Senate President, presided over the session that approved this project. He stated:

“I want to congratulate Senator Iraja, the reporter of this project, for the approval here in the Plenary for this important bill.”

The bill was first introduced by Federal Deputy Aureo (Ribeiro) in 2015.

After lengthy deliberation on April 26, the Senate approved the bill. It combined Senator Ribeiro’s bill with Senator Arns’s bill PL3825/2019, for which Senator Iraja Abreu served as rapporteur.

The Senate confirmed during the session that the country’s executive would be responsible in formulating crypto-asset rules. It could create a new regulator, delegate its power or delegate it to the Securities and Exchange Commission or Central Bank of Brazil (BC).

A number of senators, including Senator Arns, participated in the session. They discussed appropriate penalties for crypto crime, particularly fraud.

Senator Arns believes that the penalty for this crime should be adjusted according to the amount fraud, money laundering and other white-collar offenses committed. He stated:

“The amount of damage caused by this crime must be proportional to its severity. The penalty for a crime worth US $1 billion that caused damage to thousands of people will be greater than someone who did not cause more value.

Senator Rose de Freitas supported Senator Arns’s suggestion and called for harsher punishments for crimes involving cryptocurrency. She stated that the Brazilian market moves more than $40billion annually.

The senators also discussed incentives for crypto miners to set up shop in Brazil, since they will receive a total tax exemption for ASIC mining equipment imports into Brazil.

Bernardo Schucman is the senior vice president for the digital currencies division at American mining company CleanSpark. He said that crypto mining in South America’s biggest country requires specific regulation to ensure institutional investors who are not afraid of risk feel supported and protected. He stated that he believes in the benefits of crypto mining in South America’s largest country.

“Regulation is very welcomed [and] Brazil should follow the largest economies of the world to facilitate the mining and production of these coins on Brazilian soil.”

Related: Brazilian central bank president confirms that the pilot CBDC will be launched in 2022

The bill appears to be in good shape. It is expected to pass without much opposition in the Chamber of Deputies.

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