Brazil may be on the verge of embracing crypto by classifying them as monetary currencies rather than commodities
Regulation In Brazil
According to local media sources, proponents of numerous proposed legislation projects submitted in the Senate and Congress have declared that they will pursue unification of the projects owing to their similarities. This new unified proposal includes incentives for green mining as well as the criminalization of crypto-related fraud.
The congressman believes that with a clear and well-established legal framework for crypto in place that implements the Financial Action Task Force, or FATF, guidelines, the industry would be more appealing to investors interested in Brazil.
Senator Iraja Abreu said: “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.”
If approved, the measure will provide a complete legal and regulation framework affecting cryptocurrency enterprises, merchants that accept cryptocurrencies, investors, and crypto wallet holders who use cryptocurrencies to pay for goods and services. Many Central American countries are likewise scrambling to incorporate cryptocurrency into their economies and legal systems. El Salvador is the most famous for President Nayib Bukele’s full-throated push to accept Bitcoin as the country’s legal cash. Also politicians and business giants in Mexico, Cuba, and Honduras are all racing to get in on the action.
Central Bank’s Crypto Bill & Regulation
According to a recent report, Brazil is considering putting the Central Bank in charge of regulating Bitcoin and other related concerns. Senator Irajá Silvestre Filho, the rapporteur on three Bitcoin-based initiatives, said: “gave a favorable opinion to the proposals on the rules of the cryptocurrency market to the Committee on Economic Affairs (CAE) last week.”
These ideas offer cryptocurrencies new significance by treating them as genuine currencies. As a result, they are subject to regulation by the Central Bank of Brazil. However, the proposal’s innovative component that should be recognized is connected to bitcoin mining. According to the newspaper, the plan specifies that people or businesses who import bitcoin mining gear and carry out the operation using renewable energy are totally free from taxes.
The analysis comes at a time when bitcoin usage and investment in the country are at an ATH and setting new milestones. Currently, cryptocurrencies are regarded as commodities in Brazil, alongside oil, coffee, and iron ore. Furthermore, according to the article, Binance, the world’s largest exchange, issued a statement requesting that regulatory agencies “understand and watch market dynamics” in order to avoid creating “unnecessary bureaucracy or stings to innovation.”
