Brazil’s recently approved cryptocurrency law may be reviewed and revised by the new government of Luis Inacio “Lula” Da Silva. According to Expedito Netto, a former rapporteur of the law, the new government will probably review the law and include some of the issues left out for approval.
Brazil’s encryption law is not yet final, says former rapporteur
According toremarks made by its former rapporteur, Deputy Expeditto Netto, Brazil’s recently sanctioned cryptocurrency law is likely to be reviewed by the country’s newly appointed Congress.Netto said the project will review several issues left for its approval Netto explained that the changes proposed in the law are not yet final, as the project may go back into debate to review some of the remaining issues for its approval.
For Netto, who was not elected deputy again in the popular vote held last year, there are important issues that still need to be discussed and included in the law. One of the issues was whether to require virtual asset service providers to segregate users’ funds from their own. Analysts explained that forcing companies in this field to do so would affect the products they could offer due to capital constraints, and the issue was ultimately passed over.
However, after what happened with FTX, one of the world’s largest cryptocurrency exchanges, which filed for bankruptcy in November, there is international pressure for this type of constraint to be enforced on cryptocurrency exchanges.
Other less controversial topics were also omitted, like tax discounts for green mining operations.
Advantages of the Law
According to analysts, the law brings changes that could make customers feel safer while investing in cryptocurrency assets. The Brazilian Central Bank is now the organization in charge of monitoring and registering the country’s exchanges and custodians. The law also gives the Brazilian Securities Commission (CVM) more room to intervene in portfolios offered by these exchanges and limit what is considered illegal.
Another benefit of this law is that it aims to directly criminalize cryptocurrency fraud and establish penalties for those behind it.
However, experts have expressed dissatisfaction with the state in which the law was approved, saying that while this is certainly a good start, additional regulations are needed to extend what has already been established in the law.
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