It’s a historic day for cryptocurrencies in Brazil, as the Senate has finally approved the country’s 1st bill aimed at regulating the crypto market.
Brazil’s Senate has passed the country’s first bill governing cryptocurrencies in a comprehensive session, which can set the stage for the creation of a regulative framework for the country’s crypto trade.
The bill should be approved by the Chamber of Deputies and so signed off by President Jair Bolsonaro to become law within the country. this is often expected to occur by the top of 2022, according to experts who spoke with Cointelegraph Brazil.
The session that approved the project was chaired by Senate President Rodrigo Pacheco, who said:
“I want to congratulate the rapporteur of the project, Senator Irajá, for the approval, here in the Plenary of the Senate, for this important bill.”
Federal Deputy Aureo Ribeiro initial planned the bill in 2015.
The bill was then approved within the Senate following long deliberation on Tuesday, combining senator Ribeiro’s bill with senator Arns’s bill PL 3825/2019, that senator Irajá Abreu was record-keeper.
During the session, the Senate confirmed that the country’s branch would be responsible for formulating rules for crypto-assets and will either produce a replacement regulator or delegate its power to the Securities and Exchange Commission (CVM) or the financial institution of Brazil (BC).
The session conjointly saw many senators as well as the bill’s author, senator Arns, focusing discussion on applicable penalties for crypto crimes, particularly fraud.
According to senator Arns, the penalties for this kind of crime ought to be scaled per the quantity of fraud, money laundering and other white-collar crimes committed. He said:
“The penalties must be proportionate to the amount of value affected by this type of crime. So whoever committed a crime of US $1 billion causing damage to thousands of people would have a greater penalty than the someone who affected less value.”
Senator Arns’s proposal was backed by senator Rose de Freitas, who called for greater punishments for crimes involving cryptocurrencies and aforesaid that the Brazilian market had already touched quite $40 billion in Brazil.
Senators also discussed incentivizing crypto miners to open up search in Brazil since there'll be an entire tax exemption for the import of ASIC mining devices into the country.
Bernardo Schucman, senior vice president of the digital currencies division of the yank company CleanSpark, acknowledged that the cryptocurrency market wants specific regulation so institutional investors who are loth to risk feel inspired and guarded by finance in crypto mining in South America’s largest country. He said:
“Regulation is very welcome [and] the trend is for Brazil to follow the largest economies in the world and facilitate the mining of these coins on Brazilian soil.”
( Cassio Gusson, Cointelegraph,, 2022 )