Brazil’s Congress wants to approve cryptocurrency law framework before Q2. Reports from the local media indicate that both the Senate’s and Congress’ proponents have indicated they are seeking to unify the various law projects because of their similarity. The new project unites incentives to green mining as well as the criminalization of cryptocurrency-related fraud.
Brazilian Congress moves gears for approval of crypto laws
Brazilian Congress is able to approve a final law that regulates cryptocurrency prior to Q2’s end. Local media reported that two separate proposals for regulating crypto transactions in Brazil will be combined to make one document. The text will be ready for approval by senators Iraja Abreu, and deputy Aureo Ribeiro later this month.
Abreu already combined three propositions and will request the Senate to process and approve these two additional proposals (one in Chamber of Deputies, one in Senate). Abreu stated:
I’m doing everything in contact with the Chamber’s rapporteur, who did a very good job. The Central Bank’s technical team has also been very helpful. These texts have similarities and will merge into one.
According to him, this area will become more appealing for investors if there is an established legal framework in place regarding cryptocurrency. This should be in line with the Financial Action Task Force’s recommendations. He explained:
Market demand exists for safer environments for businesses. There’s a need to criminalize fraud to reduce the risk of being victim to it.
Motivational and new features
This law was inspired by the large amount of cryptocurrency-related fraud. Reports indicate that the crypto markets trade in excess of R$130billion annually, or around $27.6billion. R$6.5billion reals are linked to fraud (or about $1.38billion).
In fact, this project aims to include the definition of cryptocurrency-related fraud in the Brazilian penal code, which will carry penalties that go from four to eight years of prison time depending on the severity of the crime.
This project gives mining a special place, and offers incentives to green mining projects. Tax benefits will be available to mining projects using green energy sources. Abreu stated:
Brazil has the potential to become the green mining capital of the world. It is this objective.
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