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The Chamber of Deputies will vote on the law, which can be vetoed by the executive branch if it passes.
On Tuesday night, the Brazilian Senate enacted a bill regulating bitcoin transactions.
Senator Flávio Arns introduced the bill, which will now be debated in the Brazilian Chamber of Deputies. The executive branch then has the power to veto it if it is adopted.
For crypto firms, the law regulates the title “virtual service providers,” which will be held to the same standards as other financial institutions when it comes to crimes against the Brazilian financial system.
What are all the regulations?
The bill intends to provide a regulatory framework for the crypto business in the country.
The measure, if passed, will restrict the Brazilian Securities and Exchange Commission from supervising the crypto market, with the exception of initial coin offerings (ICOs) (ICO).
On the other hand, it establishes that the Brazilian executive branch will choose a body to oversee the crypto sector.
Arns’ bill was accepted by the Brazilian Senate’s economic affairs committee in February, putting two additional crypto initiatives introduced by senators Styvenson Valentim and Soraya Thronicke on hold.
The bill also creates a new offender involving virtual assets, which carries a two- to a six-year prison sentence. The original draft called for a sentence of four to eight years in prison, but it was decreased after a plea by Senate President Rodrigo Pacheco.
Crypto law would be the duty of the executive branch of the government, according to the arrangement outlined by the Senate in the bill.
In addition, the executive branch would have the option of establishing a new cryptocurrency regulator or assigning authority to the Securities and Exchange Commission (CVM) or the Brazilian Central Bank (BC).
The new legislation also intends to entice cryptocurrency enterprises to the country. To tempt Bitcoin miners to set up shop in Brazil, lawmakers propose to exempt them from all import taxes on ASIC mining devices.
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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.
