Brazilian Bill Creates Crypto Payments Regulation

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Brazilian President Jair Bolsonaro has signed a bill creating regulations on crypto payments.

Bolsonaro made no changes to the bill approved by Congress before signing it into law Thursday, Dec. 22, according to multiple reports on Thursday, including the Nasdaq.

The new law is due to come into effect in 180 days, according to the report.

The regulatory framework included in the new law legalizes the use of cryptocurrencies as a means of payment in Brazil.

It also creates a new category of crime, fraud involving virtual assets, and makes the creation of a virtual service provider license mandatory.

In addition, the law states that crypto assets considered as securities will be regulated by the Brazilian Securities and Exchange Commission (CVM), while other digital assets will be regulated by another body appointed by the executive branch, such as the country’s central bank.

The law does not make cryptocurrency legal in Brazil, but brings the country closer to wider adoption of digital currencies.

The legislation’s approval by lawmakers in November, and now the law being signed into law by the president, came as crypto advocates in Brazil called for more oversight in the wake of the collapse of the FTX crypto exchange.

The bill was approved by the Brazilian Senate earlier this year, but, while having to pass through the lower house of the country’s legislature, it remained somewhat dormant during the recent elections in Brazil, told Reuters Roberto Dagnoni, an executive at Mercado Bitcoin, on November 17.

However, the bill gained urgency following FTX’s multi-billion dollar implosion, Dagnoni said at the time.

The rules that currently exist have not been applicable to some players, so they can do whatever you want [law] would change a lot, Dagnoni said Nov. 17, before the bill was signed into law.

When the bill was approved by the Senate Economic Affairs Committee on February 22, Senator Iraja Abreu, who supported the bill, told Bloomberg that the legislation would establish an enabling environment for more regular use of cryptography.

With regulation, cryptocurrency will become even more popular, Abreu said at the time. Once this regulation is approved, the trend is that it will be more and more adopted in mass distribution, in trade, in a car dealership.

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