Brazil President Jair Bolsonaro approved a crypto regulation bill recently passed by that country’s Chamber of Deputies and the Senate.
A bill intended to legalize the use of cryptocurrencies as a form of payment within the country has been approved by Jair Bolsonaro, the president of Brazil who is scheduled to step down on December 31.
Bolsonaro’s office said that the president had signed bill 14.478 into law following endorsement from the nation’s Chamber of Deputies in a publication of the federal government of Brazil’s official journal on December 22.
On November 29, the parliamentary body completed the process of recognizing crypto payments by sending the law to the president’s desk.The bill’s wording states that Brazilian citizens won’t be permitted to use digital currencies like Bitcoin (BTC $16,599).
As the country’s official currency, as it is in El Salvador. However, a number of digital currencies were now considered legitimate payment methods in Brazil under the recently signed legislation.
Additionally, it created penalties for fraud involving digital assets and a licensing system for service providers of virtual assets. The declaration from Bolsonaro made no mention of which federal agency might be in charge of overseeing cryptocurrency payments.
However, just like in the US, Brazil’s Securities and Exchange Commission is responsible for overseeing digital assets that are classified as securities. As a result of the failure of FTX, the law also includes rules mandating exchanges to discriminate between user and corporate assets.
The crypto law is expected to go into force in 180 days, or in June 2023. Soon after Bolsonaro leaves office, Luiz Inácio Lula da Silva, also known as “Lula,” will take over as president on January 1. From 2003 to 2010, Lula presided over Brazil as president. In the past, he has advocated for the adoption of blockchain technology and cryptocurrencies.
