Brazil’s Chamber of Deputies approves a bill to regulate the crypto industry on Tuesday. The Senate approved the bill in April 2022, and it was stucked in the Chamber of Deputies. The bill will now need the approval of the executive branch to become law.
The bill is drafted by deputy Aureo Riberio, establishing a new crime of fraud consisting of virtual assets, with a penalty of 2 to 6 years and a fine. It also specifies the creation of a ‘virtual service provider’ license that is to be requested by crypto firms and other companies.
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According to the bill, companies can have 180 days to accommodate the new rules before the law is enforced. The bill also says that the Brazilian Securities and Exchange Commission (CVM) will regulate crypto assets securities. In contrast, other digital assets not falling under the crypto assets will fall under the responsibility of another body, which the executive branch will appoint. As per the report, the central bank is expected to be selected as another body by the executive branch.
However, Brazil is not the first nation to have bills regulating crypto transactions. Besides Brazil, other countries, such as China, Cuba, Bolivia, Iran, India, and more, have crypto transactions and other crypto-related activities that are legal and restricted.