Rio Joins the Cryptocurrency Party, and Brazil Passes a Bill Regulating Cryptocurrencies
The Brazilian Senate has Passed a Bill into Law
South America's most populous country is gradually enacting legislation to govern its digital asset economy. The Senate has passed a bill establishing a comprehensive regulatory framework for bitcoin and other cryptocurrency transactions.
According to the Senate bill, a " digital representation of value that can be traded or transferred electronically, " a "virtual asset" is a "digital representation of value that can be traded or transferred electronically, including payments and investments," according to the Senate bill.
According to the bill, local cryptocurrency providers should only operate within the country. They would be needed to obtain a licence from a Federal Public Administration organisation or entity.
As a result, the government has yet to decide if more legislative amendments are necessary. The bill, first submitted in 2015, permits the Brazilian executive branch to impose limits on virtual assets. The measure must specify whether the industry will be controlled by Brazil's central bank, the Securities and Exchange Commission, or a new body.
The bill must be approved by the Chamber of Deputies (the lower house of the National Congress) and signed by President Jair Bolsonaro before it can go into force.
Observers believe that if the bill is passed, the country's economy will be the largest in Latin America, with a legal framework for virtual assets.
