- A new bill will allow cryptocurrency payments in Brazil.
- Crypto companies require federal clearance to operate.
- However, the bill does not make cryptocurrencies legal tender.
The Chamber of Deputies in Brazil has approved a regulatory framework that would allow citizens to utilize cryptocurrencies for payments. Virtual currencies are now included in the definition of “payment agreements” regulated by the country’s Central Bank, following the document signed under the code PL 4401/2021.
Drafted by deputy Auero Ruberio, the bill, which would regulate a broad category of financial instruments known as “virtual assets,” has passed both houses of Congress and just requires the President’s signature to become law. However, the bill does not make Bitcoin or any other cryptocurrency a legal tender.
The bill further gives the nation’s executive branch the responsibility of choosing government agencies to regulate the market. Cryptocurrency transactions are expected to be governed by the Brazilian Central Bank (BCB), while those involving investment will be supervised by the Brazilian Securities and Exchange Commission (CVM). Legislators received input from the BCB, the CVM, and the federal tax authority (RFB) as they drafted the reform legislation.
Service providers, such as exchanges, will also be subject to regul ...
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