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Vote on Brazil’s Crypto Regulation Bill Set for the Senate

The Brazilian Senate’s Economic Affairs Committee has given the bill its final approval. Once the lower house and the senate have approved the bill, it will be delivered to President Jair Bolsonaro for his signature and final approval before becoming law.

For the first time, Brazil’s Senate has moved to regulate its country’s domestic cryptocurrency sector. For the largest demography in the Latin American area, an effort is underway to establish an oversight framework for cryptocurrency and digital asset use cases.

To that end, the bill’s provisions include a framework for regulating crypto and digital assets, as well as categories for grouping and classifying local Brazilian crypto enterprises according to use case and target market. This information was provided by the Brazilian Senate in official notification. Brazilian crypto exchanges and wallet businesses already exist; if the bill is signed into law, they will certainly see a significant increase in the number of users and traffic they receive.

Currently, the bill is being processed as Brazil is building its own central bank digital currency (CBDC), a digital version of the Brazilian real (CBDC). In contrast to the crypto regulatory bill, this effort is focused on bringing investment to the country rather than commercial use.

Customers or users can acquire access and “participation in financial services and provisions” through the use of a crypto broker, which is a legal business that facilitates the trading of virtual assets, as well as other comparable virtual assets traded on a platform, for fiat currencies. The bill also grants exchanges and brokers new rights of custody and transfer.

Brazil’s Federal government entities are also given particular power over virtual assets in the bill. According to Abreu, the country’s Central Bank, which has been actively involved in the preparation of the draught, would likely be tasked with this.

After El Salvador’s introduction of Bitcoin (BTC) as legal cash, Brazil will become the second Latin American country to regulate cryptocurrencies and other digital assets. El Salvador’s efforts witnessed a 30 percent increase in tourism after they were implemented. In addition to Brazil and El Salvador, Cuba too has established and implemented regulations to identify and organize the use cases of cryptocurrency and digital currencies.