New Brazilian Law Will Create Greater Regulation For Crypto

A new Bitcoin (BTC) law will reportedly permit Brazil&39s President to create or deisgnate a regulatory agency for the purposes of overseeing the crypto market. This law in Brazil is likely to be adopted by the National Congress in the first half of 2022.

The bill, which has been debated in the Chamber of Deputies since 2015, was recently adopted in the first round of voting. The Brazilian Senate has linked it to another crypto-focused law that has already been passed by the Senates Economic Affairs Committee.

It should be mentioned though that the laws approval in plenary would not make BTC legal tender in Brazil, as it is in El Salvador. The proposed bill would instead empower the Brazilian President to appoint a federal organization in charge of implementing cryptocurrency-oriented laws.

The leader would hence either establish a new regulator or outsource this responsibility to the countrys Central Bank of Brazil (BC) or the Securities and Exchange Commission (CVM). Apart from outlining specific regulatory guidelines, the bill also indicates a prison sentence of up to 8 years and a hefty fine for any fraudulent endeavors.