New rules were enacted on Tuesday in Brasilia, the capital of the soccer-loving nation, Brazil. The regulations entailed using Bitcoin as a recognized means of making payments and an investment asset within the country.
The Chamber of Deputies in Brazil, serving as a federal legislative body, had approved the law. However, it still requires approval from the executive branch before it can be enacted as a law.
The move, therefore, depicts significant progress for Brazil as it is still in process. The progress made in passing a bill is yet to qualify any cryptocurrency as a legal tender in the country.
Details of the bill would include air mileage programs and digital currencies as payment methods under the supervision of the country’s Central Bank. When the bill is finally enacted, the government’s regulatory authorities would be in charge of making decisions on the arm of the office responsible for supervising.
On that note, crypto tokens would be considered securities. Hence, they are to be placed under the legal watch of the Brazilian Securities and Exchange Commission.
Also read:The Benefits Of The New Regulation For Brazil
The numerous advantages of the new development aren’t just limited to the designation of crypto as a means of payment. Enacting the law would be a safe transaction method, issuance of licenses to crypto exchange platforms, and a guide to third-party business involvement.
In addition to their many functions, crypto exchange platforms can now create different storage measures for users’ funds and companies. Thus, there won’t be a recurrence of another misfortune like the FTX crisis.
The sudden collapse of the FTX has taken a negative toll on quite a handful of businesses related to the crypto space. Hence, the law would guide against its contagion for Brazilians in their everyday use of crypto, as opined by the CEO of Transferor Group, Thiago Cedar.
In June, a similar proposal was presented before the lawmakers, allowing Brazilians to use digital currency as an acceptable means of payment. The proposed bill also suggested the approval of crypto assets as a legal means of exchange and a powerful tool for successful investment.
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