Brazil to bring the ‘Bitcoin law’ by end of Q2 this year

According to reports, the bill regulating the crypto market in Brazil is expected to be adopted by the National Congress in the first half of 2022.

In the first round of discussion, the proposal, which has been discussed in the Chamber of Deputies since 2015, was approved. It has been linked to another crypto-related law that has already been passed by the Senate’s Economic Affairs Committee.

Senator Irajá Abreu and Deputy Aureo Ribeiro, both rapporteurs in their respective legislative chambers for the aforementioned ideas, are currently drafting a unified piece of the bill that will be given to the whole Senate for a vote.

“I’m doing everything in contact with the Chamber’s rapporteur, who did a very good job. The Central Bank’s technical team has also been very helpful,”  Senator Irajá stated, “The texts are similar and converged into one.”

Irajá further mentioned that the Senate’s president, Rodrigo Pacheco, is anticipated to put the united bill up for a vote in April. He stated:

“By joining the projects together, we accelerated the approval of this cryptocurrency milestone. There is a market demand for a safer business environment and the need for criminal classification to avoid fraud, in addition to adjusting Brazil to international agreements.”

Brazil would not adopt BTC as legal tender

Brazil was expected to adopt Bitcoin as a legal tender but the new bill, if approved, would not do so as it is in El Salvador.

The proposed bill would empower the Brazilian president to form a government organization to implement crypto regulations.  The president would either establish a new regulator or assign this authority to the Securities and Exchange Commission (CVM) or the Central Bank of Brazil (BC).

To avoid money laundering and asset hiding, the regulator would define market norms and establish norms in accordance with international standards. The government said last year that it aims to impose stricter penalties on crimes involving digital currencies.