Brazil’s Chamber of Deputies have approved a comprehensive regulatory framework for the usage and trade of Bitcoin and cryptocurrencies within the country.

The new regulations, which were approved on Tuesday night in Brasília, the nation’s capital, acknowledge Bitcoin and cryptocurrencies as digital representations of value that may be used in the country as a means of payment and as an investment instrument.

The bill now only requires the President’s signature to become law and covers a broad sector referred to as “virtual assets.” However, it does not recognize Bitcoin or any other cryptocurrency as legal tender in the country.

The executive branch is tasked with choosing government bodies that will oversee the market. The Brazilian Central Bank (BCB) is anticipated to be in charge while the country’s securities and exchange commission (CVM) would act as the regulator. The federal tax authority (RFB), the BCB, and the CVM all contributed to the development of the bill.

Citizens of Brazil are known to frequently trade Bitcoin and cryptocurrencies (at times more than the stock market). The nation now aims to create more favorable conditions for increased regular use of Bitcoin and cryptocurrencies.

Other provisions include regulating service providers, such as exchanges, who must follow specific regulations in order to operate in Brazil. 

The bill attempts to regulate the establishment and operation of Bitcoin and cryptocurrency service providers in Brazil by defining such organizations as those who provide trading, transfer, custody, administration, or selling on behalf of a third party. 

Bitcoin and cryptocurrency service providers will only be permitted to operate within the country if they are granted official consent from the federal government.

Share this article
The link has been copied!