The largest country in South America; Brazil recently regulated cryptos. The Senate of Brazil passed a bill for regulating cryptos in the country. This bill was passed on the 27th of April. The bill has the aim of creating a regulatory framework for the cryptocurrency industry in the country. Furthermore, bit-bolt is a reliable app for cryptocurrency profit and investment schemes in the country.
According to the system that the Senate proposed in the bill, cryptocurrency legislation would be held responsible by the government’s executive branch. Also, it would have the option to create a new crypto regulator or delegate jurisdiction to the Brazilian Central Bank or the Securities and Exchange Commission.
The law that has been proposed aims at alluring cryptocurrency businesses in Brazil. All lawmakers have a plan of exempting miners of Bitcoin from every import charge on ASIC mining machines for enticing them to put up shops in the country.
The deliberation of the Senate also included some discussion to open up shops in the country for incentivizing cryptocurrency miners. They proposed a completed tax exemption on ASIC mining devices imported into Brazil. The VC of the mining company of America CleanSpark; Bernardo Schucman mentioned in the discussion that there is not any requirement for particular regulation for motivating and protecting risk-averse institutional investors who wish to invest in cryptocurrency mining facilities in the largest economy of South America.
The country aims to get into the CBDC game similar to other countries worldwide. It is vital to mention that according to the information from the central bank of the country this year the trial of CBDC will be starting.
Is there any punishment for crypto fraud or crime in the bill?
- The bill also includes what punishment will be given if it is about any crimes or fraud related to crypto.
- Many senators such as Senator Flavio Arns who is the author of the bill put focus on the discussion related to suitable sanctions for cryptocurrency crimes mainly fraud. According to Senator Flavio Arns, the punishment needs to be equal to the degree of fraud, any money laundering, or other committed white-collar crimes. Thus whoever commits a crime of $1 US billion causing all damage to many people will be having a huge penalty than anyone who impacted less value.
- Any crime by these virtual assets will be punishable by a two-six years penalty in prison. In the original text, the penalty was between four-eight years but it got reduced after Rodrigo Pacheco, the Senate President’s request.
Has this bill become a law in Brazil?
- The bill regulating cryptocurrency transactions introduced by Senator Flavio Arns will next move to the Chamber of Deputies in Brazil.
- The Chamber of Deputies will be voting on this crypto bill.
- If approved then the executive branch has all power of banning it. It must first pass the crypto bill before Jair Bolsonaro, the President, signs the bill into law.
- The Senate President, Rodrigo Pacheco conducted the plenary session.
- The approval of the bill followed a huge deliberation surrounding mainly two bills.
- One of them was the bill of Senator Ribeiro and another that of Senator Arn.
- The proceedings’ rapporteur was Senator Iraja Abreu.
- However this was not the first time when the crypto bill got debated in Brazil on the senate floor.
- In the year 2015, for the first time, Aureo Ribeiro, the federal deputy introduced the crypto regulation legislation.
- In February, the economic affairs committee of the Senate approved the bill of Arn. It shelved the other two bills by Senator Soraya Thronicke and Stevenson Valentim.
What will happen once the bill is approved?
- Once the crypto bills get approval in Brazil, then the cryptocurrency companies will get the label of virtual service providers.
- They will be subjected to similar responsibilities that of other financial institutions in case of financial crimes against the financial system in Brazil.
- The role of the Brazilian Securities and Exchange Commission will be limited to overseeing the Initial Coin Offerings.
- The executive branch will get the task to formulate regulations related to cryptocurrency assets.
- The branch will have the power of either creating a new regulator or delegating all powers to the SEC or Brazil’s Central Bank.
Conclusion
In the Chamber of Deputies, the bill does not look like it is facing many challenges. Once it is approved there it is expected to be signed by the President and become law by this year’s end.
