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- A bill proposed in the Brazilian National Congress in June has recently gotten a lot of attention because it sets a deadline for the executive to begin regulating bitcoin transactions
- According to Frota, the lack of clear regulation for cryptocurrencies puts investors and the traditional financial system in danger, since crypto can let people transfer money out of the nation without being monitored
- Another key aspect of the initiative specifies that operations conducted outside of the United States must be evaluated using the same standards that apply to banks, including taxes regulations
A bill proposed in the Brazilian National Congress in June has recently gotten a lot of attention because it sets a deadline for the executive to begin regulating bitcoin transactions. If passed, the plan will make it possible to pay taxes on bitcoin transactions. The Chamber of Deputies is reviewing the idea, which will be thoroughly examined by the Finance and Taxation Committee. Bill 2140/21, a legislative project proposal that was filed in the Brazilian Chamber of Deputies in June, is presently in the limelight because it provides a defined period for the executive arm of the government to regulate bitcoin transactions. If adopted, it would set a 180-day deadline for developing all of the required mechanisms to effectively control bitcoin transactions. Alexandre Frota, a member of the Partido de la Social Democracia Brasilea, proposed the idea (PSDB).
According to Frota, the lack of clear regulation for cryptocurrencies puts investors and the traditional financial system in danger, since crypto can let people transfer money out of the nation without being monitored. Frota stated that it is important to have strict supervision and inspection of private and public banks so that the public is not fooled by promises of huge individual gains, which has already happened to a large extent. In recent years, Brazil has been recognized for its criminality linked with crypto-related frauds. The government has been quick to respond to these scams, conducting multiple operations in recent months to shut down and arrest people involved in an illicit cryptocurrency-related activity.
Another key aspect of the initiative specifies that operations conducted outside of the United States must be evaluated using the same standards that apply to banks, including taxes regulations. However, owing to the nature of bitcoin transactions, it is still unclear how this might be accomplished.
A special committee of the Chamber of Deputies is presently working on this problem. Brazil, on the other hand, is receptive to the idea of a central bank-issued digital money. The Brazilian Central Bank is investigating the establishment of a Digital Real and discussing whether there is a genuine demand for such an instrument among Brazilians.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
