- 27 April 2022
- Posted by: Cryptovalues
- Category: World News
BRAZIL READY TO REGULATE CRYPTO SECTOR BY THE END OF THE YEAR
Brazil is ready for its crypto breakthrough.
To be more precise, it has laid the legal foundations to make official a very developed phenomenon.
This is not a move that could be likened to El Salvador’s move to give Bitcoin legal tender, but more aimed at creating regulatory boundaries that will allow the sector to have a foundation on which to grow.
The law will be approved by the National Congress in the first half of this year after passing the first round of approval.
Work is being conducted on two projects headed by Senator Irajá Abreu and Congressman Aureo Ribeiro, with the aim of merging them to obtain a single bill to be voted on by the Senate in the future.
Interesting statements were made by the initiative’s proponents:
“By merging the two projects, we have accelerated the approval of this real milestone for the cryptocurrency sector. There is a demand from the market for a safer business environment and the need for criminal classification to prevent fraud, as well as bringing Brazil in line with international agreements.”
In terms of regulation, control will be assigned to the Comissão de Valores Mobiliários or the Banco do Brasil.
The regulator will be responsible for defining guidelines for the market and regulations in line with international standards, to prevent money laundering and the concealment of assets.
It is also expected to create the ideal infrastructure to promote mining as well as provide for the possibility of tax exemptions.
The regulation of the crypto sector in the South American state represents a further step forward for a country that a year ago approved several bitcoin-based ETFs, proving to be a pioneer in this form of investment and remember that it was the resounding success of the first ETF on cryptocurrencies launched on the market, which at the time collected a value of about 112 million dollars, becoming in fact the fifth largest Brazilian ETF.