Brazilian Senate Is All Set To Regulate Crypto Transactions As It Passes A New Bill
On Tuesday, the Senate of Brazil approved a bill that would regulate crypto-based transfers across the country, via launching “virtual service providers.” Proposed on the behalf of Flavio Arns (a Senator), the bill is presently moving toward the Chamber of Deputies of the country, who will cast vote on the respective bill. After being approved, the bill will be vetoed by the executive branch as it will have the authority to do so.
In simultaneous to this, the executive branch will be capable of deciding which regulatory organizations will be provided with the authority to administer the providers of crypto services. As per the rapporteur of the bill, Irajá Abreu, the Central Bank of Brazil will, most probably, be accountable for the crypto sector’s regulation. Abreu mentioned that they proceeded with the report’s discussions hence they could ultimately vote on the respective matter of crypto assets’ regulation, which counts to be very significant.
The bill discusses AML
The bill comprises inputs from the rest of the three bills from the Congress of Brazil and could establish an example for a wide-ranged regulatory agenda. As the development in the crypto sector is moving at a rapid pace, the requirement to regulate crypto has turned more prevalent. The country gives considerable importance to these laws, keeping in view that it counts to be the largest market throughout Latin America.
From June 2020 to July 2021, the crypto-based transaction volume of the country was nearly $91B, as per Chainalysis. The law will additionally direct the providers of crypto services to abide by the instructions related to the protection of funds and data of consumers. Apart from this, another inclusion in this respect would be the anti-money laundering (AML) activities related to the standard requirements.
Do regulations escalate possibilities for crypto scams?
Brazil is additionally termed as being the biggest market throughout the area for frauds. In the previous year, the evaluated amount of nearly $503M (approximately 2.5B reals) was drained in crypto scams. Nonetheless, the unique bill remains unsuccessful in providing adequate regulatory certainty to decrease such instances. As per the reports, the definition of digital-asset fraud was additionally specified by the bill.
The rest of the amendments to the penal code take into account ordering jail sentences as well as fines for the frauds of digital assets. At present, the imprisonment sentence between two and six years is lower than that suggested by the proposal of the bill’s former version, recommending between four and eight years.
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