28.10.2021

Brazil Considers Cryptocurrency Legalization Bill

A landmark event in the history of the cryptosphere was the legalization of bitcoin in El Salvador . The law recognizing BTC as a means of payment came into force in this country in early September.

Then  it became known about the plans of Uruguay to develop a regulatory framework for the cryptosphere. Now another Latin American country Brazil wants to move in the same direction.

The Brazilian House of Representatives is discussing a draft law to regulate cryptocurrency in the country, which has been in development since 2015.

Last week, a special committee of the country’s Chamber of Deputies, Câmara dos Deputados, approved a bill that would require virtual asset service providers operating in the country to register with a government agency.

The bill also provides a clearer definition of cryptocurrency and, according to local media outlets, aims to tackle digital asset crime. The document provides for heavy fines and imprisonment for those who use cryptocurrency to launder money.

The bill increases the penalty for money laundering from the previous 33% to 66%, respectively, individuals and groups caught laundering money through cryptocurrency will have to return two-thirds of the amount.

In terms of imprisonment, currently the penalty for money laundering is three to ten years in prison, but the updated rules increase it to a minimum of four years and a maximum of 16 years and eight months.

The new proposal has been submitted to the plenary session of the chamber, and if it is approved, the discussion will continue in the Senate. If adopted, the document will pass to the president.

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