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Bitcoin is listed as a legal means of payment! Brazil’s “Cryptocurrency Law” Comes into Force in June Next Year

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Brazilian President Jair Bolsonaro signed a “Cryptocurrency Regulation Act” into law on Thursday, laying the foundation for the establishment of a regulatory framework for cryptocurrencies, while recognizing Bitcoin and cryptocurrencies as legal means of payment and financial assets.

The bill is expected to take effect as a formal law in June next year, 180 days later, to ensure that cryptocurrency companies have sufficient time to adapt to the new policy.

Prior to this, cryptocurrency transactions were legal in Brazil, but there was no regulation against cryptocurrency-related fraud and abuse. The bill would seek to regulate cryptocurrencies, thus setting up rules for the sale of cryptocurrencies, establishing a licensing regime for service providers of cryptocurrencies, and setting penalties for non-compliance, but a tax exemption for cryptocurrency mining operations using clean energy was rejected. delete.

The bill stipulates that cryptocurrency-related businesses must follow the principles of free initiative and free competition, sharing of resources provided by customers, information security and personal data protection. It also stipulates that cryptocurrencies considered as securities will be regulated by the Brazilian Securities and Exchange Commission (CVM), while cryptocurrencies used as a means of payment will be regulated by the Central Bank of Brazil (BCB).

Other regulations include the regulation of service providers such as exchanges, and cryptocurrency operators can only conduct business in Brazil if they comply with relevant regulations and obtain authorization from the federal government.

In addition, the bill also proposes to include in the criminal code the crime of fraud in cryptocurrency, securities or financial asset services, which can be punished by 2 to 6 years in prison and a fine, and the crime of money laundering, which can be punished by 3 to 10 years in prison, if the act is using crypto. currency, the sentence will be increased from one-third to two-thirds.

Brazilians bought more than $6 billion in cryptocurrencies in 2021, nearly double the amount in 2020, according to the Central Bank of Brazil, and the rush to buy cryptocurrencies has also paved the way for regulation.

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