Brazilian Parliament Heading for Key Vote on Crypto Regulation Bill
Categories: Crypto News US
An ambitious private member’s bill that seeks to regulate the Brazilian crypto market could be approved by the National Congress before the end of the first half of this year – with MPs set for a key vote on Tuesday next week.The original bill was authored by Senator Flavio Arns of the Podemos Party and has already passed the Senate. It has also been merged with a second crypto bill that has previously been approved by the Senate Economic Affairs Committee. The second bill was authored by Senator Iraja Abreu.
Not everyone appears to be happy with the bill’s rapid progress through the legislative system, however. Some Senators have called for more time and wider consultation prior to a vote. But its architects stated that there would be room for “improvement” at a later date. Instead, they claimed that both market participants and the Banco Central (the central bank) had joined calls for faster regulatory rollouts. The terms of the bill seek to define cryptoassets as “a type of fully digital money that is issued by private agents, sold exclusively through the internet.”
The bill makes it clear that while coins would not be considered illegal, they clearly “operate outside the rules of business and the Brazilian financial sector” – with jail terms mandated for new crypto-related fraud offenses. As such, crypto exchanges and brokerages will be regulated, but not to the point that free “enterprise and competition” are compromised, the authors claimed. As has been the case in many other countries, crypto exchanges – as well as brokers and wallet providers – would be obliged to separate their own and their customers’ assets, manage risk, guarantee the security of sensitive customer data and answer to a regulatory body appointed by the government.
But, critically, the architects have spoken of creating a “simplified procedure for obtaining operating licenses” – a suggestion that they want to avoid situations, as has been the case in nations like Japan, whereby firms are forced to wait months for their license applications to be considered. The bill also includes a number of incentives for crypto miners, including import tax breaks for mining hardware importers.
An aggressive confidential part's bill that looks to control the Brazilian crypto market could be supported by the Public Congress before the finish of the main portion of this current year - with MPs set for a vital decision on Tuesday one week from now.
The first bill was created by Representative Flavio Arns of the Podemos Party and has proactively passed the Senate. It has likewise been converged with a second crypto charge that has recently been endorsed by the Senate Monetary Issues Board of trustees. The subsequent bill was created by Representative Iraja Abreu. But its draftsmen expressed that there would be space for "development" sometime in the future. All things considered, they guaranteed that both market members and the Banco Focal (the national bank) had joined calls for quicker administrative rollouts.
The particulars of the bill try to characterize cryptoassets as "a kind of completely computerized cash that is given by confidential specialists, sold only through the internet. "The bill clarifies that while coins wouldn't be thought of as unlawful, they plainly "work outside the guidelines of business and the Brazilian monetary area" - with prison terms commanded for new crypto-related extortion offenses.
However, fundamentally, the engineers have discussed making a "worked on system for getting working licenses" - an idea that they need to keep away from circumstances, as has been the situation in countries like Japan, by which firms are compelled to trust that their permit applications will be considered. The bill likewise incorporates various motivations for crypto diggers, including import tax reductions for mining equipment merchants.