A bill governing cryptocurrency transactions was approved by the Brazilian Senate’s full body in April of this year. Senator Flávio Arns’ bill was presented to the Brazilian Chamber of Deputies, which then took a vote on it.
The bill gives cryptocurrency businesses the designation of “virtual service providers,” making them accountable for crimes against the Brazilian financial system in the same ways as traditional financial institutions.
Arns’ bill was accepted by the economic affairs committee of the Brazilian Senate in February, while two other crypto initiatives put up by senators Styvenson Valentim and Soraya Thronicke were shelved.
The bill also establishes a two- to a six-year prison sentence as the maximum punishment for crimes committed using virtual assets. In response to a request from Senate President Rodrigo Pacheco, the sentence that was originally proposed would have ranged between four and eight years.
Cryptocurrency Regulatory Bill Awaits Executive Sanction
On Tuesday, the Chamber of Deputies passed the fundamental language of the Bill, which governs the Brazilian cryptocurrency market. The matter will now be sanctioned by the president.
In accordance with the legislation, businesses have 180 days to adjust to the new regulations before the bill takes effect. The deputies also rejected the focus that demanded segregation of property.
The issue relates to the market authority of regulatory organizations. The project states that the Securities and Exchange Commission will be in charge of overseeing crypto-assets that are classified as securities, while another body that will be chosen by the Executive Branch would be in charge of overseeing assets that do not come under this classification. The selection of the Central Bank is anticipated.
The SEC recently released an opinion to the market with recommendations on how to invest in crypto assets that are regarded as securities in light of the delay by Congress in implementing the PL. The text also outlines the regulator’s scope of authority and suggests methods for standardizing, inspecting, supervising, and disciplining market participants.
The PL that was adopted today had already been authorized by the Senate in April, but it got stuck in the Chamber in June, and even though it repeatedly appeared on the voting agenda, it wasn’t approved again until today, nearly six months later. There was disagreement over some textual issues, particularly those pertaining to patrimonial segregation.