Brazil has been working on a regulatory framework for its crypto industry for quite some time, and now its inching closer to making it a law. Initially, two separate draft bills were before the parliament, but only one – the House Bill 4401/21 – is set to advance.
Crypto has been the talk of the Brazilian parliament since 2015. The most speculated legislation has now been approved in the first round of consideration. Senator Iraja Abreu and Deputy Aureo Ribeiro are working on the draft, a unified text of the bill, that will be sent to the Senate for voting. Senator Abreu highlighted that he is doing everything with the Chamber’s rapporteur. He said the Central Bank’s technical team has been very helpful.
The Senator revealed that the president of the Senate, Rodrigo Pacheco was expected to put the bill to vote this month. They have now joined the projects together to accelerate the approval of the crypto bill. Abreu highlighted that market demand for a safer business environment and the need for criminal classification to avoid and prevent fraud.
However, the approval of the bill doesn’t mean that Bitcoin will become a legal tender in Brazil. The legislation would just allow the Brazilian president Jair Bolsonaro to determine a federal entity responsible for regulating digital assets. Bolsonaro can either set up a new regulator or delegate regulation to Brazil’s Securities and Exchange Commission, or to the Central Bank.
The bill is expected to go up for vote next week, and if approved, the Draft Bill will return to the Chamber of Deputies. It will then be put on the President’s desk for consent.