Brazil’s Senate Passes “Bill” To Oversee Cryptocurrencies

In a plenary session, Brazil’s Senate passed the country’s first bill controlling cryptocurrencies, paving the way for the adoption of a regulatory framework for the country’s crypto market.

JUST IN: Brazil’s Senate approves bill regulating #Bitcoin and crypto ??

It now goes to a vote on the Chamber of Deputies. pic.twitter.com/KdxcMENYAk

— Bitcoin Magazine (@BitcoinMagazine) April 27, 2022

According to sources, the Senate passed the bill on Wednesday. Brazil’s strategy to regulate the digital asset market is highlighted by details from the proposed crypto-focused regulations. Virtual assets, according to lawmakers, should be governed by the executive government. The executive branch of government can then decide on new laws to protect investors and ensure policy compliance while also encouraging innovation in Brazil’s digital economy.

Senators also suggested that if no other dedicated department is established, the country’s Securities and Exchange Commission can act as a crypto market supervisor. The Central Bank of Brazil is also mentioned in the bill as a possible regulator for digital assets.

In addition, the law is said to include an exemption from import fees for Bitcoin miners who want to bring in specialized ASIC mining units. The regulation is intended to foster the formation of both domestic and foreign crypto-powered institutional bodies in the country, according to lawmakers. Several senators, including the bill’s author, Senator Arns, focused discussion on suitable sanctions for crypto crimes, particularly fraud, during the hearing.

Senator Arns believes that the severity of the sanctions should be proportional to the amount of fraud, money laundering, and other white-collar crimes committed. He stated:

“The penalties must be proportionate to the amount of value affected by this type of crime. So whoever committed a crime of US $1 billion causing damage to thousands of people would have a greater penalty than the someone who affected less value.”

The Brazilian crypto bill first surfaced in 2015, when Federal Deputy Aureao Ribeiro proposed the regulations. The initiative, however, did not gain traction until Senate President Rodrigo Pacheco presented it years later. The bill appears to have few opponents in the Chamber of Deputies, where it must be passed in a plenary session before being sent to President Bolsinaro to become law.

Brazil has joined a growing list of countries that are enacting crypto legislation. President Joe Biden of the United States recently signed an executive order aimed at defining a possible framework for digital assets.

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