An unprecedented cryptocurrency bill may soon be passed into law by the Brazilian Senate in Brazil. The country’s Congressional Chamber has already approved the Bill of Deputies.
The Bill, if eventually it is legislated, will see an unprecedented comprehensive regulation across all sectors of the country. The Bill was developed to cater to the cryptocurrency industry’s tangential growth and facilitate the integration of its traditional environment into the Defi space.
The law will ensure compliance and enforce judicial penalties to non-compliant parties. Criminal penalties and prison time might be levied, depending on the severity of the non-compliant acts caught.
The Bill’s Initial Approval By Brazilian Chamber Of Deputies
The newly developed legislation proposed jointly by industry leaders and regulators in the country has been vetted initially this year by Brazil’s Chamber. Of Deputies.
The Bill coined Bill 2303/15 proposes clarity of crypto regulations and compliance guidelines to guide the nation’s crypto community individuals and organizations.
The Bill proposed by Deputy Aurero Ribeiro on behalf of the regulators and the industry leaders lays down explicit definitions of exchanges and virtual assets and currencies.
The term virtual assets and virtual currencies were first introduced into the global financial space earlier this May by the Financial Action Task Force (FATF). The international agency classified cryptocurrency, its derivatives, and organizations that provide related services as “virtual assets” and virtual “assets service providers.”
The Bill doesn’t explicitly mention cryptocurrencies like the mainstream way; it instead refers to the FATF’s representation of the cluster to represent the cluster in its propositions.
The legislation, when passed, will utilize a central body in the designed framework that will be an overseer and a watchdog that will closely monitor all cryptocurrency leveraged activities in the country.
The central body will supposedly be appointed by the executive arm of the Brazilian government.
The Chamber members have deliberated over the proposed Bill for a time now.
The Bill has now been forwarded to the country’s senate. The final decision lies with the lawmakers in the country.
Although the chamber-approved Bill doesn’t cite the term cryptocurrencies and utilized virtual assets and currencies, it clarified that it wouldn’t affect any change, positive or negative, in other representations that the Bill may affect.
The representations include the digital representation of the country’s legal tender and other international currencies in the stock, forex, and cryptocurrency markets. Another representation clarified is the case of reward tokens given to ‘lucky’ customers by some organizations or during certain advertisement rallies.
Maximum Penalties And Brazil’s Central Bank
The Bill hasn’t named an official central regulator. Still, speculations from experts and undisclosed lawmakers have indicated that Brazil’s Central Bank will most likely be the nation’s central regulator.
The law section includes targeted penalties for crypto-related crimes and offenses, which may offer decades of prison time and traditional financial crime punishments.
The Bill also caters to the menace of nested exchanges against its anti-money laundering policies (AML), which is also punishable by varying prison time and heavy fines.