Brazilian lawmakers have finally regulated the crypto market bill. Once approved, the bill will be ready for final approval from President Jair Bolsonaro. After seven years of controversy, the House of Representatives passed Bill (PL) 4.041/2021 early Tuesday evening (29th) to govern Brazil’s cryptocurrency sector.
Can People Use Bitcoin or Cryptocurrency as a Means of Payment?
Under the new regulations, Brazilians will use Bitcoin as a digital state of value that citizens can use as a payment method and a fixed asset in the South American country. In particular, domestic bitcoin and other cryptocurrencies are still illegal means of payment.
A recent tweet from Wu Blockchain reveals that the Brazilian government has lifted the segregation of controversial content. Specifically, asset segregation ensures that an investor owns an asset even if a brokerage firm holds it. When a business goes bankrupt, those assets will return to consumers and not be used to repay creditors.
Defaulters could face 2 to 6 years in prison.
The new rules apply to legal entities that convert virtual currency into local or foreign currencies, exchange virtual assets, make remittances, or provide financial services related to issuers or sellers of virtual assets. According to the draft, all locally active cryptocurrency providers must establish a physical company in the country. In addition, the bill also stipulates that the government will find or imprison those who do not comply for two to six years for him.
The Senate Proposed the subject of debate. The founder of the project, Aureo Ribeiro (Solidaridad), opposed the amendment. He said they were hampering markets, particularly the issue of asset segregation, which the House of Representatives eventually banned. Furthermore, the tax exemption for mining cryptocurrencies with sustainable energy has also been removed from the Senate version. However, according to Expedito Netto, tax issues will be dealt with in specific projects. And various measures related to renewable energy are already being discussed in parliament.
The failure of FTX, one of his top three cryptocurrency exchanges in the world, has sparked a debate over its segregation into public discourse. All signs point to company founder Sam Bankman-Fried using customers’ money for financial transactions.
Experts say that after these changes, the exchange will likely resemble a bank and use customer deposits for investments.
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