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Brazil began the process of legalizing cryptocurrencies in the country on February 22, 2022, and the process is expected to be completed in 2025. In Brazil, this initiative may mark a milestone in the development of digital currencies.
In a unanimous vote, the Brazilian Senate Economic Affairs Committee backed a cryptocurrency regulation measure, setting the stage for a Senate vote before sending the measure to the lower house for further consideration. been approved by the National Congress, it will be delivered to President Jair Bolsonaro for his signature.
Assuming the proposed legislation is approved and becomes law. In that case, Brazil will become the first Latin American country to establish guidelines for investments in digital cryptocurrencies, becoming the first in the region.
El Salvador, for its part, has already committed to becoming the world’s first legal acceptor of Bitcoin in September 2021, a date already set. A similar promotion was held in El Salvador, in which citizens received a $30 reward for downloading the country’s national digital wallet.
After all, Cuba legalized cryptocurrencies like Bitcoin last year, citing “social and economic interests.”
The Brazilian bill
The bill offers an explanation on how bitcoins work. In addition, the measure specifies the responsibilities of cryptocurrency market service providers. Afterward, it will make recommendations to the federal government on the establishment of a legislative framework and the legalization of cryptocurrencies. According to Senator Iraja Abreu, the BCB is likely to regulate the cryptocurrency market in the near future.
According to Abreu, if his bill is passed, the country’s cryptocurrency sector may see growth in the coming months.
I affirm that:
“Once this regulation is approved, it will be used more in supermarkets, stores and car dealerships, among other places.”
Brazil is trying to curb cryptocrime.
According to Abreu, legalizing the bitcoin market can help reduce crime. The main objective of this plan is to deter criminal activity such as tax evasion, money laundering, and other crimes related to cryptocurrencies.
The law recommends that cryptocurrency traders be fully aware of anti-money laundering procedures and refrain from illegal activities. Furthermore, those who break the law will be jailed or severely punished. Regulators in Brazil have seized a total of 172 million reais ($33 million) from cryptocurrency exchanges suspected of being involved in money laundering.
Brazil, like many other countries, is trying to legitimize the cryptocurrency business and establish its own digital currency backed by the local central bank (CBDC). The measures are expected to be tested this year and the digital asset is expected to be introduced in 2024.
