The Senate of Brazil has passed the nation's first bill overseeing the cryptocurrency sector. This bill, that aims at bringing the digital assets sector under Brazilian rules, is now two steps away from becoming a law. The bill now awaits approval from the Chamber of Deputies before being signed into law by President Jair Bolsonaro. Brazil may get its regulatory framework around cryptocurrencies by the end of this year, country officials expect.
Senate President Rodrigo Pacheco chaired the bill approving committee in Brazil.
"I want to congratulate the rapporteur of the project, Senator Irajá, for the approval, here in the Plenary of the Senate, for this important bill,” CoinTelegraph quoted Pacheco as commenting on the development.
Senator Irajá Abreu and Deputy Aureo Ribeiro are the two Brazilian senators behind the bill that was first proposed in 2015 by Federal Deputy Aureo Ribeiro.
As part of its crypto laws, Brazil is laying major focus on establishing relevant fines and punishments for those who misuse cryptocurrencies for unlawful activities like money laundering, fraud, and other white-collar crimes.
Violators of Brazil's crypto laws, when enforced, could end up in jail for four to eight years.
As per blockchain research firm Triple-A, around 10 million Brazilians held cryptocurrencies in 2021.
Either a new regulatory body will be set up to oversee crypto operations in Brazil, or the responsibility would be handed over to the Securities and Exchange Commission (CVM) or the Central Bank of Brazil (BC).
The Brazilian authorities are also looking to incentivise crypto miners with tax exemption benefits.
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