Brazil is now among the first nations to officially outline the rules and laws governing the virtual digital assets sector. Jair Bolsonaro, the President of Brazil, has turned the previously proposed crypto law into law. The Brazilian parliament approved this draft crypto rulebook in November. As of now, all crypto players operating in the Latin American nation have 180 days to ensure compliance with these new guidelines.
Brazil will likely get a new, internal committee that would retain oversight of all crypto activities processed in the country. Emerging crypto companies looking to establish themselves in Brazil are now also required to obtain a corresponding “Virtual Service Provider” license in order to legally operate there.
Under the laws once the crypto companies If they get their permits, they will be able to set up physical offices in Brazilian cities, a said report by CryptoPotato.
Changpeng Zhaothe manager of Binance crypto exchange called Brazil’s move a “major” milestone in the global crypto sector.
“Another great step that brings more credibility to this industry, improves user protection and targets mainstream adoption,” Zhao wrote in a Twitter Post Office.
A new law establishes guidelines for operating crypto exchanges in Brazil. This is an important step in strengthening the crypto ecosystem.
Another great move that brings more credibility to this industry, improves user protection and aims for mainstream adoption.https://t.co/aPaV3vs0M8
— CZ :large_orange_diamond: Binance (@cz_binance) December 22, 2022
The laws aim to protect investors from financial fraud as the crypto sector is riddled with scammers and crypto transactions generally cannot be traced.
The new laws direct Brazilian law enforcement agencies to create a new category under the “crime of fraud” that deals with crypto-related things financial fraud.
Violating the country’s law could see infamous actors jailed for four to six years, along with a hefty fine, Coindesk noticed.
Brazil is taking active steps to jump on the crypto bandwagon earlier than other countries.
In May, Nubank, Brazil’s largest digital bank by market value, began offering bitcoin and ether for purchase or sale on its platform. Nubank’s decision was fueled by the rising number of crypto investors there.
Bitcoinand stablecoins tether are the two most popular cryptocurrencies held by Brazilian organizations, the RFB had claims in its findings two months ago.
of Brazil This was announced by Rio de Janeiro that it would allow its residents to pay property taxes in the form of cryptocurrencies starting in 2023.
Canada, India, the UK, and the US are also all working on their respective crypto rules, which could see the light of day in the coming year.
