Brazil approves cryptocurrency bill recognizing Bitcoin as a payment method

Lawmakers successful Brazil person approved a cryptocurrency model measure for the usage of integer currencies successful the Latin American country.

Once passed into law, Brazilians tin usage Bitcoin arsenic a outgo method, portion integer assets volition beryllium recognized arsenic an concern plus class.

Bitcoin arsenic payment

House measure 4401/21 aims to found an bureau to oversee the Brazilian cryptocurrency industry. This includes managing the operations of work providers, specified arsenic crypto exchanges.

Under the bill, exchanges are required to observe circumstantial rules to beryllium allowed entree to the Brazilian market. For example, processes to segregate users’ funds from the exchange’s funds. The rules besides necessitate work providers to summation support astatine the national authorities level arsenic well.

The bureau volition delegate work to appropriate, existing, governmental bodies. According to Bitcoin Magazine, the Central Bank of Brazil volition negociate the usage of Bitcoin for payments. While the Comissão de Valores Mobiliários (securities regulator) volition grip the concern regulatory aspect.

While this represents a immense measurement guardant for cryptocurrency adoption, the measure falls abbreviated of making Bitcoin ineligible tender.

Who volition motion the bill?

The last hurdle earlier passing into instrumentality is the president’s signature. The existent president, Jair Bolsonaro, is acceptable to permission bureau connected Dec. 31, having mislaid to governmental rival Lula da Silva by the narrowest of margins connected Oct. 31.

The predetermination effect is marred successful contention with Bolsonaro supporters alleging electoral fraud. Commenting connected his defeat, Bolsonaro thanked those who voted for him and asked protestors to respect the law.

Earlier this year, earlier winning the election, da Silva acknowledged the enlargement of cryptocurrencies successful Brazil to section media. He added that a model needs to beryllium successful spot to harmonize home practices with planetary standards, peculiarly successful respect of nefarious activities.

“the government, particularly done its autonomous Central Bank, indispensable make norms successful enactment with the planetary modular to debar amerciable practices that tin marque usage of crypto assets, specified arsenic wealth laundering and currency evasion, successful summation to avoiding practices of fraudulent trading.”

Bitcoin was up 2.5% implicit the past 24 hours to commercialized astatine $16,900 astatine the clip of press.

The station Brazil approves cryptocurrency measure recognizing Bitcoin arsenic a outgo method appeared archetypal connected CryptoSlate.