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Brazil’s lawmakers have finally passed a bill to regulate the crypto market. After getting approval, the bill is ready for President Jair Bolsonaro’s final sign-off. After seven years of fighting, the Chamber of Deputies passed Bill (PL) 4,041/2021, which regulates the Brazilian cryptocurrency market, on Tuesday night (29).
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Will Bitcoin be used as a way to pay?
According to the new rules, bitcoin will be a digital currency that can be used as a way to pay for things and as an investment in the South American country. Bitcoin and other cryptocurrencies are still not legal currency in the country.
In a recent tweet, Wu Blockchain revealed that the Brazilian government has removed controversial content asset segregation. Notably, asset segregation is a way for investors to make sure that their assets, even when they are in the care of a brokerage firm, still belong to them. If a company goes bankrupt, its assets are given back to its customers instead of being used to pay off its debts.
Those who don’t pay could spend 2–6 years in jail.
The new rules would apply to legal entities that exchange virtual currencies for local or foreign currencies, exchange virtual assets, make transfers, or provide financial services to virtual asset issuers or vendors.
According to the bill, all cryptocurrency providers that do business in the country must have a physical company there. The bill also says that those who don’t follow the rules will have to pay fines or spend 2–6 years in prison.
The Senate’s proposed change was what was being talked about. The project’s creator, Aureo Ribeiro (Solidariedade), was against the changes that were suggested. He said that they would hurt the market, especially when it came to the issue of asset segregation, which the House eventually banned.
Senate version of the bill
In addition, the Senate version of the bill got rid of the tax break for mining cryptocurrencies with renewable energy. Expedito Netto says that tax issues should be dealt with in specific projects, and Congress is already talking about different ways to use renewable energy.
Failure of FTX
The failure of FTX, one of the top three cryptocurrency exchanges in the world, has sparked a public debate about segregation. All signs point to the fact that the company’s founder, Sam Bankman-Fried, used his customers’ money to make money.
Experts say that after these changes, the exchanges could be more like banks and use customer deposits to make investments.
Source: Google Trend