Brazil has emerged among the first countries today, which have officially outlined the rules and laws to govern the virtual digital asset sector. Jair Bolsonaro, the President of Brazil signed the previously proposed cryptocurrency bill into law. The Brazilian Congress passed this draft cryptocurrency rule in November. Starting now, all crypto players operating in the Latin American country will have 180 days to ensure compliance with the guidelines. this new rule.
Brazil There will likely be a new internal committee that will maintain oversight over all crypto operations being handled in the country. Upcoming crypto companies that aim to set up shop in Brazil, will now also have to obtain the relevant ‘virtual service provider’ license in order to legally operate there.
According to the law, once Cryptocurrency company receiving their approval, they will be able to set up physical offices in Brazilian cities, a report by CryptoPotato.
Changpeng ZhaoCEO of Cryptocurrency Exchange Binance calls Brazil’s step a ‘major’ milestone in the global crypto sector.
“Another great move that brings more credibility to the industry, improves user protection, and moves toward universal adoption,” Zhao wrote in an article. Twitter parcel.
The new law sets guidelines for how cryptocurrency exchanges in Brazil should operate. This is an important step to strengthen the crypto ecosystem.
Another great move that brings more credibility to the industry, improves user protection, and drives mainstream adoption.https://t.co/aPaV3vs0M8
— CZ :large_orange_diamond: Binance (@cz_binance) December 22, 2022
The laws are intended to protect investors from financial fraud as the cryptocurrency sector is rife with scammers and, in general, cryptocurrency transactions are untraceable.
New laws instruct Brazilian law enforcement to create a new category under ‘fraud’ that will deal with crypto-related acts financial scam.
Violating the laws of the land can land notorious actors in prison for four to six years along with a hefty fine, Coindesk note.
Brazil is taking aggressive steps to jump into the crypto pool earlier than other countries.
In the May, Nubank, Brazil’s largest digital bank by market value, has begun offering Bitcoin and Ether to buy or sell on its platform. Nubank’s decision is motivated by the growing number of crypto investors there.
Bitcoinand stable money fastener are the two most popular cryptocurrencies held by Brazilian institutions, RFB has declare in its findings two months ago.
Brazil Rio de Janeiro announced Starting in 2023, it will allow its residents to pay property taxes in the form of cryptocurrency.
Canada, India, the United Kingdom, and the United States are also working on their respective crypto rules that are likely to come out next year.
