Brazil’s Congress approves bill regulating crypto payments

Brazil’s Congress passed a bill that would regulate the use of cryptocurrency as a means of payment throughout the country, potentially providing a boost toward the adoption of digital assets in the South American nation. The bill still requires the approval of the executive branch before it becomes law.

On Nov. 30, Brazil’s Chamber of Deputies approved a bill regulating the crypto industry. The bill was approved by the Senate in April and had been stuck in the Chamber of Deputies. And now, it requires the approval of the executive branch to become law.

Authored by deputy Aureo Ribeiro, the bill establishes a new crime of fraud involving virtual assets, with a penalty of between two and six years in jail plus a fine. It also stipulates the creation of a “virtual service provider” license, which is to be requested by companies, including exchanges and other crypto firms.

Companies will have 180 days to adapt to the new rules before the law will be enforced, according to the bill.

The document stipulates that crypto assets considered securities will be regulated by the Brazilian Securities and Exchange Commission (CVM). While other digital assets not falling into that category will fall under the responsibility of another body (expectedly The Central Bank) to be appointed by the executive branch.

Lately, the largest South American country joined the first movers to regulate cryptocurrencies. The Brazillian Senate passed a bill to regulate cryptocurrencies in the country on April 27.

Previously, stablecoin issuer Tether announced this October it will enable the conversion of USDT to Brazilian reals through an agreement with local crypto services provider SmartPay, which is integrated with TecBan, a Brazilian company that owns 24,000 ATMs.