The largest Latin American country could be the next to regulate cryptocurrency, with authorities hoping that this will promote its use across the continent.
The Brazilian Senate will vote on a bill that would make Brazil the first Latin American country to regulate cryptocurrency.
The Senate's Economic Affairs Committee unanimously supported the crypto measure on Feb. 22, potentially enhancing the bill's chances of passing a vote on the Senate floor.
It will be referred to President Jair Bolsonaro to be signed into law once it has passed both the Senate and the lower house.
"Guidelines for the provision of virtual asset services" are stated in the Act. Senator Irajá Abreu of Brazil said on February 22 that he expects the bill will help to prevent different financial crimes involving cryptocurrency.
"The project's goal is to prevent or limit illicit activities like money laundering, tax evasion, and a variety of other crimes." There is a licit, legal market, which makes up the vast majority of this industry, but exceptions exist."
Senator Abreu, who proposed the law in 2019, told Bloomberg on February 22 that he is still working on it. He believes that if this rule is implemented, crypto will become more widely accepted in supermarkets, businesses, and car dealerships.
The bill, which has been in the works for almost three years, outlines several parts of what comprises a virtual asset (VA), a broker or exchange, and which federal agencies would have jurisdiction over the topic.
A virtual asset is defined as a "digital representation of value that can be traded or transferred electronically and utilized to make payments or for investing purposes," according to the law.
A crypto broker or exchange, according to the bill, is a legal business that allows "participation in financial services and provisions," and performs exchanges between VA and fiat money, VA and other VA, VA transfer, and VA custody.