Brazilian regulators are proposing stricter regulations for virtual coins in a bid to increase investments in the same. The proposal has been submitted to the Brazilian chambers but is yet to undergo scrutiny at Plenary.
A Special Committee of the Brazilian Chamber of Deputies is looking to pass legislation that increases the penalty on financial crimes involving digital currencies, such as Ethereum, Bitcoin, and other cryptocurrencies by as much as a hundred percent.
What the New Penalties Are
As of the time of this publication, the penalty for financial crimes is a jail term of three to ten years and another fine as determined by the presiding judge. If the new regulation is approved, the penalty will increase to four to sixteen years and eight months behind bars, plus the fine. The Plenary has yet to analyze the proposal.
The approved document comes in place of Bill 2303/15 of Deputy Netto Expedito, which also delineates financial crimes in the delivery of services of virtual assets, clearly defined virtual portfolios, and designates their regulations. For instance, from the approved text, points in the air miles program aren’t virtual assets.
According to the rapporteur, “This is a matter that interests many Brazilians involved in investments today.” He further observed that the country had apprehended many for digital currencies-related crimes and trade with the new technology.
The Need for Stricter Cryptocurrency Regulations in Brazil
Member of Chambers of Deputies of Brazil, Aureo Ribeiro, asserted that the bill was being sponsored to protect the average Brazilian crypto investor from crypto scams and schemes. He noted that more than 300,000 people have become victims of financial pyramid schemes related to cryptocurrencies in Rio de Janeiro alone.
Indeed, Brazil has seen a growth in community-wide adoption of cryptocurrencies in recent times. This widespread adoption led the Head of Brazil Central Bank, Roberto Campos Neto to call for a reshaping of local regulation so as to stimulate the growth of the crypto market further.
Ribeiro is of a similar opinion and stated that “With the lack of regulation, people have nowhere to turn.” The deputy believes that by enacting the fresh regulations proposed in the bill, “there will no longer be profiteers using technology to deceive millions.”
Different countries around the world are exploring varying regulatory stances when it relates to digital currency activities on their shores. While many crypto proponents advocate for these laws to help the industry gain mainstream adoption, many believe that laws that are proven to be too strict can stump interest amongst retail investors
Read More
All News
Floppypepe ($FPPE) is your ticket to the moon. Escape the ordinary and reach for lunar gains with this AI meme token. Secure your spot now before it's too late.
Join Now