Brazil Approves Bill To Regulate Bitcoin, Hits Milestone
Countries all round the world have been looking for ways to monitor and regulate the cryptocurrency industry. America asked it Federal Government to put forth recommendations for the same, Russia recently passed a bill which filters the investors by taking a test, and also introduces rules and regulations for crypto transactions. Joining the bandwagon, Brazil too has now approved a bill which not only recognises but also seeks to regulate the daily transactions of Bitcoin and other cryptocurrencies. The bill was approved by Brazilian Senate’s Economic Affairs Committee, CAE, on 22nd February, Tuesday.
The bill, PL 3825/19, was drafted by Senator Flavio Arns back in 2019. Brazil’s central bank, Securities and exchanges commission, and federal tax authority also contributed in the drafting of the said bill. It lays down a few basic rules for transactions and investments in crypto currencies, especially Bitcoin. It also puts forth a framework for those establishments that provide blockchain technology-related services like cryptocurrency trading, transfer of crypto assets, custody and administration, etc. All this is to regulate the interference of third-party applications as well. The bill also state that such services can only function after gaining a formal approval from the government.
As of now, the bill is yet to come in enforcement as it is yet to get an approval from the senate floor. Next, the bill also needs to get a thumbs up from the House. Only if approval is obtained at all these stages, then Brazil’s President- Jair Bolsonaro will be able to sign it as a law.
Senator Iraja Abreu, who was in-charge of drafting the bill and was appointed by the government, mentioned in a media statement that the Brazilian government will appoint a special institution to regulate the crypto industry, but he is of the opinion that most likely it will be the central bank of Brazil. He also believes that the central bank should interfere only handle cases where cryptocurrencies are used to raise fiat capital.
With this, as more and more countries include the crypto industry into their legal monitoring and regulation system, the industry might soon become official mode of investments and payments even. Not to mention, this will help the rise of the metaverse as well.
Also Read: What is in Store for Cardano?