The law includes many digital currencies under the definition of legal payment methods in Brazil and established a licensing regime for virtual asset service providers.
Jair Bolsonaro, the president of Brazil set to leave workplace on Dec. 31, has signed a bill aimed at legalizing the use of crypto as a payment method among the country.
In a Dec. twenty two publication of the official journal of the federal government of Brazil, Bolsonaro’s office said the president had signed bill fourteen.478 into law following approval from the country’s Chamber of Deputies. The legislative body sent the bill to the president’s desk on November. 29 because the final step in recognizing crypto payments.
According to the text of the bill, Brazil’s residents won't be able to use cryptocurrencies like Bitcoin BTC tickers down $16,841 as legal tender within the country, as is that the case in El Salvador. However, the newly passed law includes several digital currencies underneath the definition of legal payment methods in Brazil. It additionally establishes a licensing regime for virtual asset service suppliers and sets penalties for fraud using digital assets.
Bolsonaro’s announcement didn't suggest that federal agency could be in charge of supervising crypto payments. However, like the united states, digital assets considered securities fall under the regulatory umbrella of Brazil’s Securities and Exchange Commission. The law additionally included provisions likely made in response to the collapse of FTX, requiring exchanges to distinguish between user and company assets.
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The crypto law can take effect in 180 days — probably in June 2023. Bolsonaro is slated to go away workplace in a matter of days, once that Luiz Inácio Lula da silva, or simply “Lula,” can assume the presidency on January. 1. Lula served because the president of Brazil from 2003 to 2010 and has previously made statements in favor of crypto and blockchain adoption.
(TURNER WRIGHT, Cointelegraph, 2022)