This week, Brazil’s Congress of Deputies may approve a cryptocurrency bill introduced earlier this year. According to Ricardo Barros, federal leader of the chamber, the bill will be debated, but there are no reports yet on a possible vote, as the chamber will also debate other time-sensitive bills.
Cryptocurrency bill
on the agenda to be discussed this week.
Brazil is moving closer to regulating cryptocurrency assets and virtual asset service providers (VASPs). The cryptocurrency bill, identified by the number 4.401/2021, will be taken up this week, along with other time-sensitive bills. This report was made by Congressional Vice President, Federal Leader Ricardo Barros, whostated that the bill could be voted onthis week.
However, Brazil is in pre-election mode, as the presidential vote will take place on October 2. As such, Congress may not discuss sensitive issues to avoid the electorate leaning one way or the other. However, if the cryptocurrency bill is finally voted on and approved, it will be sent back to President Jair Bolsonaro for final sanction. The Office of the Vice Chancellor is also expected to consider other important legislation this week, including a telework bill.
Background on Brazil’s Cryptocurrency Regulation
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According to local media, the cryptocurrency bill will be submitted later this week and could be considered by the Office of the Vice Chancellor. The project has a somewhat complicated history in Brazilian institutions. The current bill is the result of the combination of two different projects as part of proponents’ work to approve crypto-centric legislation this year.
The project, approved by the Brazilian Senate in April, seeks to regulate cryptocurrency exchanges by creating a single regulator to address the issue. Similarly, the project will legalize cryptocurrency mining and establish tax exemption rules for mining institutions that present green projects that use 100% renewable energy for the establishment of mining farms.
In a previous interview, the delegates behind this cryptocurrency bill project stated that one of the primary motivations for this legislation is to punish domestic cryptocurrency fraud. To this end, the project also defines new types of crypto-related crimes and establishes harsh penalties for individuals and companies involved in this type of crime.
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