Brazil is now one of the first countries to officially outline the rules and laws for the virtual digital asset sector. Jair Bolsonaro, the president of Brazil has passed the previously proposed crypto law into law. Brazil’s parliament had given this draft crypto ruleset a nod of approval in November. As of now, all crypto players operating in the Latin American country have 180 days to ensure they comply with these new guidelines.
Brazil is likely to get a new, internal commission to oversee all crypto activity processed in the country. Emerging crypto companies looking to establish themselves in Brazil will now also need to obtain a relevant “virtual service provider” license to legally operate there.
According to the laws, once they get their approval, the crypto firms will be able to establish physical offices in Brazilian cities, one said. report by CryptoPotato.
Changpeng Zhao, the CEO of Binance crypto exchange, called Brazil’s move a “major” milestone in the global crypto sector.
“Another great step that gives this industry more credibility, improves user protection and aims for mainstream adoption,” Zhao wrote in a Twitter post.
New law sets guidelines for how crypto exchanges work in Brazil. This is a big step towards strengthening the crypto ecosystem.
Another great move that makes this industry more credible, improves user protection and focuses on mainstream adoption.https://t.co/aPaV3vs0M8
— CZ: large_orange_diamond: Binance (@cz_binance) December 22, 2022
The laws are designed to protect investors from financial fraud, as the crypto sector is full of scammers and crypto transactions are generally untraceable.
The new laws instruct Brazil’s law enforcement units to create a new category under the “crime of fraud” that deals with crypto-related financial scams.
Violating the country’s law can send notorious actors to prison for four to six years, along with a hefty fine. noted Coindesk.
Brazil is taking active steps to jump on the crypto bandwagon ahead of other countries.
In May, Nubank, Brazil’s largest digital bank by market value, began offering Bitcoin and Ether to buy or sell on its platform. Nubank’s decision was fueled by the rising number of crypto investors there.
Bitcoin and stablecoin Tether are the two most popular cryptocurrencies owned by Brazilian organizations, the RFB claimed in its findings two months ago.
Brazil’s Rio de Janeiro announced it would allow its residents to pay property taxes in the form of cryptocurrencies from 2023.
Canada, India, the UK, and the US are also all working on their respective crypto regulations that may see the light of day in the coming year.
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