On Tuesday evening in Brazil, after 5 months of voting dormancy, Brazilian authorities passed the crypto bill 4401/21. Brazilian chambers of Deputies waved a green flag to the bill to regulate the cryptocurrency sector in the largest South American country.
The bill’s main aim is to request lawmakers to legalize Bitcoin in the country. The bill’s author is Aureo Riberio, a member of the Chamber of Deputies. It’s not an easy task to make a bill in the regulation. The bill has faced a long struggle to apply. The bill was already passed by the Senate in April this year.
This bill includes compulsory regulatory action to be done. For example, it proposed a penalty of 2-6 years and a fine for illicit crimes related to crypto assets. The second thing is that every crypto-related company, trading firm, and exchange for working in Brazil should have to get a Virtual Service Provider (VSP) license.
As the investingdotcom reports stated, “The final phase of approval is rested in the hands of the executive branch. Depending on the panic that the FTX collapse has created in the crypto and off-chain market, the timeframe of the approval is seemingly at stake.“
The bill brings forward a concept of appointing regulatory officers who have the power to oversee the crypto sector. According to the provision, the Brazilian Securities and Exchanges Commission (CVM) can check on crypto assets as securities. As per the report of investingdotcom, the Central Bank of Brazil (BCB) or the Federal Tax Authority (RFB) is expected to be designated as the overseas regulator.
Brazil holds 1.5 million Bitcoin holders and crypto users in the country. The Crypto community has expanded by 135% through a year.
Brazil and many more countries did the same to implement a strict amendment in the country to make the crypto market more efficient and transparent for the customers.
Recently South Korea implemented such amendments related to crypto with several mandatory rules and regulations.
This sector needs more focus and attention because too much related to asset security has happened in the last few weeks. Countries such as Brazil and South Korea are getting serious about this. The government is taking responsibility for handling such a crisis in the future to avoid repeating the drama.