Brazil now passes a complete regulatory framework that will enable payment of goods and services through cryptocurrencies as the South American country continues to embrace the crypto space.
Brazilian lawmakers approve a complete regulatory framework for crypto, regulating the use of bitcoin as payment. The lawmakers approved the framework for trading and use of cryptocurrencies in the country.
The Chamber of Deputies of Brazil approved the law despite a lack of approval from the executive branch of government. However, unlike El Salvador, this does not make bitcoin a legal tender in Brazil.
The regulatory framework in Brazil
The Chamber of Deputies of Brazil made a decision that will impact the progress of crypto in the country. Nevertheless, the law still requires the signature of the President of Brazil for it to be enacted.
The bill will include air mileage programs and digital currencies as payment methods. The two will fall under payment methods supervised by the country’s central bank.
Once passed into law, the executive branch of government will supervise the framework’s activities. Tokens that will classify as securities will remain under the regulator’s jurisdiction. The Brazilian Securities and Exchange Commission acts as the regulatory authority in the country.
In addition to placing crypto as a payment method, the law permits the creation of licenses. The licenses target crypto exchange platforms for custody and management of crypto by third parties.
The law requires exchanges to clearly distinguish between user and company funds. The law seeks to protect investors from loss of funds, such as in the FTX collapse case.
Proposal for crypto usage
In June, the legislature tabled a proposal to allow Brazilians to use crypto as payment. The proposal also suggested protecting users’ private keys from acquisition by the courts.
The main aim of the proposal was to make crypto assets a means of exchange. The move also makes exchanges a powerful instrument for accessing goods, investments or services.
Lawmakers in Brazil deem it fit to enact the bill into law to ensure crypto growth and regulation in the country.
