The President of Brazil, Jair Bolsonaro, has given his approval to a bill regulating the crypto industry that was just passed by the country’s Senate and Chamber of Deputies.
The bill, which was approved on Thursday, will come into force 180 days from now, in the meantime crypto businesses in the area must adjust to the new regulations.
The measure, which was approved by the Parliament of Brazil in late November, would allow cryptocurrency companies to register in the nation and set up actual offices.
These businesses include companies that provide cryptocurrency financing services or enable the conversion of digital assets into fiat money.
Additionally, it creates a “virtual service provider” license and prepares the path for a new federal agency that will oversee companies that deal in digital assets.
According to the law, digital assets that are considered to be securities will be supervised by the Brazilian Securities and Exchange Commission, whereas others will be controlled by a body that has not yet constituted.
Brazil’s Crypto Push
The Federal Revenue of Brazil (RFB), the department in charge of managing tax administration and customs in Brazil, published a document listing businesses that disclosed the bitcoin holdings.
The number of crypto holdings by Brazilian corporations is over 12,000, which is the highest figure ever reported, according to the figures that have been made public in october. Additionally, The Brazilian city of Porto Alegre has officially added Bitcoin Pizza Day to its calendar of annual events. It will be observed on May 22.
Following FTX’s collapse last month, similar rules are being pushed through other jurisdictions at a rapid pace.
A similar bill that would transfer industry regulation from the Commodity Futures Trading Regulatory Agency to the Financial Services Authority is being debated in Indonesia.
Last Monday, the Securities Administrators of Canada issued regulations prohibiting the sale of cryptocurrencies on loan to Canadian clients.
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