- The bill to regulate digital assets in the South American country is back on the agenda after the collapse of the crypto exchange FTX.com.
- The former president of the Brazilian blockchain association, Fernando Furlan, believes that the bill approved by the Senate will now have “enough push” in Congress.
Crypto industry boosters in Brazil are asking federal legislators to reactivate discussion and approval of the bill to regulate the cryptocurrency market, after the bankruptcy of the world’s second-largest crypto exchange in transaction volume.
The sudden downfall of Sam Bankman-Fried’s enterprise has raised major concerns about the management and trading of unregulated digital currencies for lawmakers, governments, and traders around the world, including Brazil.
The Good Side of the FTX Disaster
Roberto Dagnoni, CEO of 2TM, the parent company of Mercado Bitcoin, told Reuters that the law remained “kind of dormant” during the Brazilian electoral process that culminated in the victory of leftist Luiz Inácio Lula da Silva.
But consider that now the legal initiative must be on the agenda for discussion in Congress.
"If there is a good side (to the FTX disaster), it would be that it gets the law prioritized," Dagnoni said Tuesday. He stressed that "The rules that currently exist have not been applicable to some players, so they can do whatever you want ... This (law) would change a lot." Last May, the Senate passed a cryptocurrency bill whose approval is pending in the Chamber of Deputies. Said legal instrument establishes fines and prison sentences for crypto companies that infringe the law.
Likewise, cryptocurrency trading platforms must have physical headquarters in the country and offer information to the authorities in cases of suspected crimes such as money laundering, fraud, and others on a mandatory basis.
On the Flipside
- Although administrators of cryptocurrency trading platforms find what happened with FTX worrying, they believe that this event will give a legislative boost to the law.
- This is the belief of the businessman and former president of the Brazilian Blockchain Association, Fernando Furlan, who also hopes that the turbulence unleashed by the fall of FTX will give “a push” to the approval of the bill.
- Furlan is aware that the regulation of cryptocurrency trading in the country will establish greater supervision and control for the industry, making the operation of cryptocurrency trading platforms more challenging. But he also believes that it will be healthier.
Why You Should Care
If the current bill is approved, Brazil could become one of the largest regulated cryptocurrency markets in the world. In recent years, the adoption and trade of digital assets has not stopped growing, as shown by an official report for the third quarter.
If you would like to read other articles related to the regulation and trading of cryptocurrencies in Brazil, check out:
What to Expect in the Brazilian Crypto Industry After Lula’s Victory
Cryptocurrency Adoption in Brazil Is Spurring: How to Ensure Cyber-Security?