The Brazilian cryptocurrency market has experienced significant growth recently, and it seems that the bill of a parliamentary member might assist in regulating this thriving industry. The House of Commons will vote on whether to approve legislation that will increase security while investing in crypto exchanges and safeguard customers from fraudulent transactions using initial coin offers (ICOs) on Tuesday next week.
Regulation For Crypto
Earlier this year, Sen. Flávio Arns from the Podemos Party presented and obtained Approval from Congress for a bill to govern cryptocurrency. Sen. Irajá Abreu’s proposal was combined with this, and the Senate’s Economic Affairs Committee later approved them.
According to sources from Globo media, Congress hopes to have the unified legislation passed and signed into law by June. Abreu made the following comment in response:
“By combining the proposals, we were able to move the ratification of this crypto milestone forward more quickly. In today’s marketplace, there is a desire for a secure corporate environment, as well as a strong desire for criminal categories that will stop fraud. The adoption of this legislation will bring the country up to date with international accords on cryptocurrency regulation.”
With this law, the primary purpose is to create a “register” of governmental authorities and political people who would be able to adopt flawless measures in place to combat money laundering via crypto transactions. Politicians and people involved in the process have expressed varying degrees of support for the legislation. Some believe that additional time should be given for deliberation before making this choice, while others believe it will be passed without much difficulty.
Some associates of the Bill’s architectural team, on the other hand, were dissatisfied with the way events were progressing. They believed there would be space for an “upgrade” afterwards, but in actuality, both market players and the Banco Central have emphasized the urgency for speedier regulatory policies to be implemented immediately.
Brazil Will Regulate Its Local Cryptocurrency Market
Holding coins will not be deemed criminal under the terms of the bill but according to another section of the legislation, individuals involved in crypto-related scams will face criminal prosecution.
Cryptocurrency exchange firms, brokerage houses, and wallet providers must maintain a clear separation between their assets and that of clients, protect their customers’ confidential documents, mitigate threats, and adhere to the rules of a government-approved regulatory agency.
To prevent scenarios such as those that have occurred in Japan, where companies had their licensing applications postponed by the authorities for months, the architects propose adopting “a simpler approach” that would enable these firms to operate more easily and without experiencing any delays with processing periods. In addition, there is a reward for cryptocurrency miners included in the legislation. The crypto miners would be permitted to import mining equipment not subject to tax into the country.