Brazil Senate Okays cryptocurrencies with Bitcoin Bill
Brazil’s Senate has passed the country’s first bill governing cryptocurrencies in a very plenary session, which can set the stage for the creation of a regulatory framework for the country’s crypto industry. The bill must be approved by the Chamber of Deputies then signed off by President Jair Bolsonaro to become law within the country. this is often expected to occur by the top of 2022, in step with experts who spoke with Cointelegraph Brazil.
Rodrigo Pacheco, Barazilian senate president chaired the the session that approved the project. concerning the projec he said:
“I want to congratulate the rapporteur of the project, Senator Iraja, for the approval, here within the plenary of the senate, for this important bill”
The Making of The Legislation
The bill which was first proposed by Federal Deputy Aureo Ribeiro in 2015. was approved within the Senate following lengthy deliberation yesterday April 26 with Senator Irajá Abreu as rapporteur. The deliberation ended by combining Senator Ribeiro’s bill with that of Senator Arns with index PL 3825/2019.
During the session, the Senate confirmed that the country’s branch would be accountable for formulating rules for crypto-assets and will either create a replacement regulator or delegate its power to the Securities and Exchange Commission (CVM) or the financial organisation of Brazil (BC). Top of the agenda in the session was the focus by the senators including the bill’s author, Senator Arns on the appropriate penalties for crypto crime, especially fraud
According to Senator Arns, the penalties for this sort of crime should be scaled in line with the quantity of fraud, concealment, and other white-collar crimes committed.
“The penalties must be proportionate to the quantity important laid low with this kind of crime. So whoever committed against the law folks $1 billion causing damage to thousands of individuals would have a greater penalty than the someone who affected less value.”
Senator Arns’s proposal was backed by Senator Rose de Freitas, who required greater punishments for crimes involving cryptocurrencies and said that the Brazilian market already moves quite $40 billion in Brazil.
Senators also discussed incentivizing crypto miners to open up shop in Brazil since there’ll be an entire tax exemption for the import of ASIC mining devices into the country.
Response from the crypto industry
Bernardo Schucman, senior vice chairman of the digital currencies division of the American company CleanSpark, recognized that the cryptocurrency market needs specific regulation in order that institutional investors who are averse to risk feel encouraged and guarded by investing in crypto mining in South America’s largest country. He said “Regulation is incredibly welcome [and] the trend is for Brazil to follow the most important economies within the world and facilitate the mining of those coins on Brazilian soil.”
The bill giving cryptocurrencies a green light comes a few days after cryptocurrencies received a green light in Africa is indeed a welcome development. And a source of hope as we wait for others to embrace the new technology.