According to Bitcoin Magazine, Brazilian President Jair Bolsonaro has signed a bill to establish a regulatory framework that includes the trading and use of Bitcoin in the country.
Brazilian President Jair Bolsonaro signed a bill 22 Dec, Thursday morning establishing a complete regulatory framework for bitcoin transactions and usage in the country, according to the Federal Government’s Official Journal (DOU).
President Bolsonaro enacted the Congress-approved bill without any amendments. As previously reported, the new rules recognize bitcoin as a digital representation of value that can be used as a means of payment and as an investment asset in the South American country.
According to the text of the bill, a virtual asset is a "digital representation of value that can be negotiated or transferred electronically and used for payment or as an investment." Previously, according to the text of the bill, Brazilian residents were not allowed to use cryptocurrencies such as Bitcoin as the legal tender of the country like El Salvador. According to the newly passed law, digital currency will now be officially listed as a legal payment method in Brazil.
The new law aims to create a criminal framework to manage crimes involving digital assets. The penalty for this type of offense is 4 to 6 years in prison and a fine. It is also responsible for licensing programs for crypto service providers, which even includes exchanges and trading intermediaries.
The Central Bank of Brazil (BCB) will purportedly oversee the use of bitcoin for payments, while the U.S. Securities and Exchange Commission (CVM) will investigate investments related to cryptocurrencies.
The law just designated cryptocurrencies as a form of payment, but among other things, the law requires exchanges to make a transparent distinction between company funds and user funds. This is done to avoid fiascos like the FTX crash.
I hope you will now know about Brazil President has allowed crypto bill regulation. The crypto law is expected to take effect 180 days from the date of its passage; however, keep in mind that Bitcoin is not currently considered legal tender in Brazil.
