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The law was approved by the Chamber of Deputies of Brazil but still requires the approval of the executive branch to be enacted.

While Brazil has not created Bitcoin tickers down $17,106 el salvador as Republic of El Salvador did last year, the South-American nation has passed a law that legalizes crypto payments throughout the country.

The Chamber of Deputies of Brazil, a federal legislative body, has passed a regulatory framework that legalizes the utilization of cryptocurrencies as a payment technique among the country. whereas this makes vital progress for crypto among Brazil, the law still needs the signature of the president of Brazil for it to be enacted.

The passing of the bill doesn't build any cryptocurrencies legal tender among the country. However, the bill can include digital currencies and air mileage programs within the definition of payment strategies that are under the supervision of the country’s financial organisation.

After being passed into law, the government’s executive branch should decide that office will be are responsible of supervision. Still, tokens {that will|which will|that may} be thought of securities will stay underneath the jurisdiction of the Brazilian Securities and Exchange Commission (CVM).

Apart from designating crypto as a payment technique, the law allows the creation of licenses for crypto exchange platforms and for custody and management of crypto by third parties. additionally to the present, the law would force exchanges to form a transparent distinction between company and user funds, to avoid another incident like the FTX collapse.

Related: UAE regulator revokes FTX license amid the exchange’s collapse

Back in june, a similar proposal was issued to allow Brazilians to use crypto as a way of payment and protect their private keys from being taken by courts. The proposal aims to form crypto assets a means of exchange and an “instrument of access” to product, services or investments.

Meanwhile, whereas the FTX collapse has impacted several sectors among the crypto space, it'll not affect everyday crypto use for Brazilians consistent with Thiago César, the ceo of Transfero group, which is closely tied to the Brazilian crypto ecosystem.