Brazil’s President Sanctions Cryptocurrency Law – Regulation Bitcoin News

[ad_1]

President Jair Bolsonaro has approved Law 14.478, which regulates cryptocurrency-related operations and Virtual Asset Service Providers (VASPs) in Brazil. The document, approved on the last day of the deadline, will begin to be applied 180 days after its sanction. This will give all parties a period to adjust to compliance.

Cryptocurrency law finally sanctioned in Brazil

Brazil finally approved its cryptocurrency law in no time. After completing almost the entire period of action, President Jair Bolsonaro signed into law Bill 14,478 on December 21, when it was published in the Official Journal of the Union, the country’s government publication.

With Bolsonaro’s sanction, stock exchanges and other organizations subject to the law will have 180 days to prepare to comply with the new guidelines. However, if Bolsonaro had not sanctioned the law, the project would have returned to Congress, with the possibility of being sanctioned by the Senate and the Chamber of Deputies without presidential support.

It would have been another way to approve the legislation before President-elect Luis Inacio Lula Da Silva took office in January.

Feedback on Approval

Reactions to the law’s approval have been mostly positive, with industry players seeing it as the first step to regulating the status of cryptocurrency and cryptocurrency trading in Brazil. However, due to differing views on the subject, the project had to be approved leaving out several controversial elements, such as segregation of funds and tax rebates for green mining operations.

This has led some to view the law as a stepping stone, given that there will need to be subsequent laws in order to supplement the base offered by current cryptocurrency law. On November 29, Isac Costa, partner at local law firm Warde Advogados, said:

It may take up to two years for the law to have practical effect, which leads me to believe that its approval is only a symbolic act.

Other global companies take a different view on the subject, seeing this as an important step in increasing the use of bitcoin and other cryptocurrencies as payment methods in the country. On this, Alex Adelman, CEO of Lolli, a bitcoin rewards app, said:

Brazil’s move to regulate bitcoin as a payment mechanism paves the way for greater adoption of bitcoin in the country and in Latin America as a whole.

Tags in this story Alex Adelman, approval, Brazil, Congress, cryptocurrency law, Chamber of Deputies, Exchanges, Isac Costa, Jair Bolsonaro, Lolli, luis inacio lula da silva, Senate, virtual asset service providers (VASP)

What do you think of the sanction of the cryptocurrency law in Brazil? Tell us in the comment section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is provided for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More popular newsIn case you missed it

[ad_2]