The Chamber of Deputies finally approved the pending bill for crypto firms.
Brazil made significant progress regulating crypto as its legislature passed a crypto regulation bill. The country’s Chamber of Deputies has now passed the bill for regulating crypto, which the Senate had already passed back in April. The executive branch would have to approve the bill before it becomes law.
The bill in question considers various aspects of crypto to regulate the industry, including punishment for fraud in the virtual asset space between two and six years, accompanied by a fine. The bill would also facilitate the issue of licenses to crypto exchanges and other crypto-related firms, which would be called a ‘virtual service provider’ license. Moreover, the bill would give 180 days to companies to comply with the rules mentioned in the future law.
Brazil has been dealing with the issue of crypto regulation for years. Aureo Ribeiro proposed the bill way back in 2015, which was finally passed by the Senate in 2022. Two other bills were also proposed, which were shelved earlier.
The Brazilian Securities and Exchange Commission (CVM) would be the nodal regulator for all digital assets termed as securities, while other digital assets are expected to be regulated by the Central Bank. The bill signifies a positive direction for Brazil in regulating crypto and is expected to prevent scams in this space in the future, while also bringing about further growth of the industry.