Brazil’s New Crypto Regulation Allows Digital Currencies to be Used As Payment Methods

Brazil President Jair Bolsonaro has signed into law a bill that “provides for the inclusion of virtual currencies and air mileage programs in the definition of ‘payment arrangements’ under the supervision of the Central Bank.”

This bill was passed by Brazil’s Chamber of Deputies on 29 November 2022. The Brazilian Parliament, which is called the National Congress, is composed of the Chamber of Deputies and the Federal Senate.

According to CoinDesk, bill PL 4401/2021, which was authored by deputy Aureo Ribeiro, was approved by the Brazilian Senate back in April 2022. Then, yesterday, it got approved by the Chamber of Deputies. It now needs to be approved by the President to become law.

A report by CoinDesk published on 30 November 2022 said:

“The text 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 to be appointed by the executive branch. The Central Bank is expected to be chosen.“

As Bitcoin Magazine pointed out, this bill does not make Bitcoin or any other cryptocurrency a form of legal tender in Brazil.

Per a CoinDesk report published on 22 December 2022, “dDigital assets that are considered securities, according to the new regulations, will be supervised by the Brazilian Securities and Exchange Commission (CVM)” and “those that do not fall into that category (to be determined) will be overseen by another yet-to-be-created body.”

This law will become effective in 180 days.

President Bolsonaro is leaving office at the end of this month after which Luiz Inácio Lula da Silva (aka “Lula”) will take power as the new president of Brazil.

Image Credit

Featured Image via Pixabay

Source: Read Full Article