Introduction:
On Thursday, President Jair Bolsonaro of Brazil gave his approval to a measure that would regulate cryptocurrencies. The bill had previously been adopted by the Brazilian President Signed a Bill Regulating Cryptocurrencies Chamber of Deputies and the Senate of the country. As the last stage in the process of recognising crypto payments, the legislative body did its part on November 29 by sending the law to the president’s desk.
The new legislation makes the fraudulent use of virtual assets a criminal that may result in a sentence of between four and six years in prison in addition to a monetary punishment. In addition to this, it sets up a system for the licensing of service providers dealing with virtual assets, such as trading intermediaries and exchanges.
On the other hand, in the same vein as El Salvador, people will not be allowed to utilize cryptocurrencies like Bitcoin as a form of legal cash in the country. Despite this, the recently enacted law extends the list of lawful payment methods in Brazil to cover a number of other digital currencies.
It is important to take notice that, in accordance with the new legislation, the Brazilian Securities and Exchange Commission (CVM) would be in charge of monitoring any digital assets that are categorized as securities (CVM). Those that do not fit into that group (yet to be identified) will be governed by a different organization that has not yet been established.
Conclusion:
In addition, businesses will have a period of one hundred eighty days to adjust to the new regulations, and it is anticipated that the cryptocurrency law will become operational in June 2023.
On December 31st, the present President of Brazil will officially step down from his position, and the following month, Luiz Inacio Lula da Silva will take office as the new President of Brazil. The latter has previously made remarks in favor of the use of cryptocurrency and blockchain technology.
