The bill was passed by the Chamber of Deputies and the Senate before being signed by the President.
President Jair Bolsonaro has finally approved the much-anticipated crypto bill in Brazil, and with it, a new crypto law is slated to come into force in Brazil. The actively debated bill was passed by the country’s legislative body and sent to the President’s office on November 29. Brazil has taken a step further to regulate crypto, which is expected to help the industry grow sustainably in a regulated environment.
The new law would criminalize fraud in the virtual assets space and enable web3 companies to obtain a license for operating. Exchanges, digital asset marketplaces, and others will come under its purview. The law will not legalize crypto as legal tender but will include digital currencies under legal payment methods. Companies would get 180 days to comply with the new law’s rules, with the Brazilian Securities and Exchange Commission as the regulatory authority over virtual assets.
The new law has been welcomed by the industry, as it is anticipated that fraud in the industry will be reduced after web3-based companies are regulated. Fresh new crypto projects would get incentivized to grow under a regulatory environment, removing the scope of uncertainty from government authorities.