Brazil’s Senate Approves Bill to Regulate Crypto Sector

The legislators of Brazil have recently voted in favor of passing a cryptocurrency regulatory bill in the Senate. The local media outlets of the South American nation confirmed that the crypto bill acquired legal status in the region last Wednesday. The Twitter account of Bitcoin Magazine shared that Brazilian Senators have granted the crypto regulatory bill a visible majority, and the bill has now reached the Chamber of Deputies.

The legislative guidance available in the cryptocurrency bill will allow the government departments, financial regulators, and banking sector to regulate the cryptocurrency sectors with greater efficacy. Furthermore, legislators from Brazil insist that all digital currency regulatory powers should remain within the domain of the Federal government.

Brazil will Offer a Friendly Environment to Crypto-Related Businesses

According to the legislators in Brazil, new laws are passed to safeguard the interests of cryptocurrency traders in the region. The government also claimed that the crypto bill would increase the quote of financial security for digital currency investors and curtail the risks associated with the industry.

At the same time, the government plans to incentivize crypto-related businesses in the country that apply for a registration and contribute to the economic development.

Securities and Exchange Commission of Brazil recently issued a statement claiming that the federal financial agency is ready to act as the crypto ombudsman in case that there no other departments are nominated for the task. The crypto bill, however, plans to nominate the Central Bank of Brazil as the main regulator of the nascent industry.

Another noteworthy clause of the Brazilian Senate’s cryptocurrency bill is granting import tax exemption for Bitcoin ASIC mining operators. The legislators are confident that the step will encourage more Bitcoin miners to establish their mining farms in the region.

Senator Arns recently suggested talked about imposing a legal penalty on crypto defaulters and said that the financial compensation on the threat actors would depend on the number of damages that they have caused.

At present, the Brazilian crypto bill is waiting for approval by the Chamber of Deputies. Following positive voting from the chamber, President Jair Bolsonaro will be able to add the bill to the law before the end of 2022.

The bill under question was first introduced in 2015 by Federal Deputy Aureao Riberio. Ukraine is another country that has announced the legalization of Bitcoin recently.

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