Brazil Senate passes crypto transaction regulation

The nation of Brazil laid the foundations to regulate its growing crypto trading markets last Tuesday. The Senate Committee for Economic Affairs had earlier given a unanimous green signal for the bill and upon clearance from the National Congress, will be forwarded to President Jair Bolsonaro for final approval. 

The Crypto Situation in Brazil and Latin America

Once enforced, the largest Latin American nation will be collaborating and joining forces with other countries. The bill will help in creating a compliance structure for regulating cryptocurrencies as the nation moves closer to completing its previously proposed CBDC(central-backed digital currency). Other than Brazil, Cuba had announced its intentions of crypto regulation the previous year, citing socioeconomic concerns.

Meanwhile, El Salvador became the first nation to accept Bitcoin as legal tender worldwide, passing the bill in September 2021. El Salvadorean citizens received 30 USD worth of Bitcoins for downloading the national bitcoin wallet. The country has also proposed further plans, including investments worth USD 1 Billion for the construction of a Bitcoin city.

Also Read : Zimbabwe Next In Line To Legalize Bitcoin And Enable Legal Payments In Cryptocurrency 

The Proposed Crypto Regulation Bill

The proposed bill introduced by Senator Arns starts off by explaining digital assets and highlighting the obligations of crypto service providers. According to the draft’s designated rapporteur Senator Irajá Abreu, the bill also petitions Brazil’s federal government to nominate a body for crypto regulation enforcement and points towards the Central Bank of Brazil(BCB). 

The bill once successfully passed would actually result in higher crypto adoption and awareness throughout Brazil. Senator Abreu further stated, “Once this regulation is approved, the trend is that it will be increasingly adopted in the supermarket, in commerce, in a car dealership”.

Also Read : Why You Need To Think About Initial Coin Offering or ICO To Secure Your Crypto Investment

Possible Impact

The proper legislation on crypto regulation would help in decreasing illegal activities associated with crypto. Cybercriminals and ransomware attackers often demand denominations in crypto. Proper crypto enforcement laws would also help the government in regulating financial crimes such as money laundering and tax evasion. 

The bill suggests crypto service providers incorporate anti-money laundering technology to monitor and prevent illegal crypto usage. Imprisonment and penalties are in the bill’s provision. Law enforcement agencies had seized assets worth USD 33 million in a crypto exchange money-laundering inspection in July 2021.

Wrapping Up

For a long time, crypto trading service providers were urging governments around the world to pass crypto regulation laws. The proposed bill is beneficial for the global crypto community, removing the stigma of their association with illicit activities.