Jair Bolsonaro, the president of Brazil set to go away workplace on Dec. 31, has signed a invoice geared toward legalizing using crypto as a fee methodology inside the nation.
In a Dec. 22 publication of the official journal of the federal authorities of Brazil, Bolsonaro’s workplace said the president had signed invoice 14.478 into regulation following approval from the nation’s Chamber of Deputies. The legislative physique sent the bill to the president’s desk on Nov. 29 as the final step in recognizing crypto payments.
According to the text of the bill, Brazil’s residents will not be able to use cryptocurrencies like Bitcoin (BTC) as legal tender in the country, as is the case in El Salvador. However, the newly passed law includes many digital currencies under the definition of legal payment methods in Brazil. It also establishes a licensing regime for virtual asset service providers and sets penalties for fraud using digital assets.
Bolsonaro’s announcement did not suggest which federal company may very well be in command of supervising crypto funds. Nonetheless, like the US, digital property thought of securities fall underneath the regulatory umbrella of Brazil’s Securities and Alternate Fee. The regulation additionally included provisions possible made in response to the collapse of FTX, requiring exchanges to tell apart between consumer and firm property.
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The crypto regulation will take impact in 180 days — possible in June 2023. Bolsonaro is slated to go away workplace in a matter of days, after which Luiz Inácio Lula da Silva, or just “Lula,” will assume the presidency on Jan. 1. Lula served because the president of Brazil from 2003 to 2010 and has beforehand made statements in favor of crypto and blockchain adoption.
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