New Brazilian President Will Affect The Future Of Crypto
After defeating his rival, incumbent President Bolsonaro, in a contentious election, Lula da Silva is anticipated to become Brazil’s future leader. The previous Marxist leader received more than sixty million ballots, breaking the former high from more than 10 years ago.
Although Bolsonaro received a sizable number of votes, according to Brazil’s electoral commission. Lula da Silva won the election with more than fifty percent, disqualifying Bolsonaro from seeking a second term despite the fact that a sizable number of his supporters participated.
Lula da Silva once advocated for central banks to get involved in cryptocurrency. And that might influence the crypto status in the future.
What effect will Lula’s victory have on cryptocurrencies?
The main bank must maintain the regulatory system for crypto, according to Luiz Inácio da Silva, who presented a number of manifestos prior to the Brazilian presidential election. To prevent cryptocurrencies from having a negative impact on the national economy, in his view, the impact of digital assets should be evaluated.
The incoming president notes that the crypto market has lately grown astronomically, which has prompted authorities to concentrate on it.
In the past, the challenger has advocated for reducing the country’s trust in the abroad exchange marketplace. Lula thinks that this might stop bad things from happening to the economy. Lula announced in July that he was in favor of making the SUR an official currency.
Despite what he said at the time, the vice president’s office was still considering a bill to legalize Bitcoin. Referring back to this manifesto, his recent election victory might serve as a catalyst for Brazil to pay more attention to the crypto industry in order to better regulate the digital asset sector.
The new law
As a sign of their interest in the industry, Brazilian lawmakers put forth a bill in June to permit cryptocurrency payments. After Lula’s victory, this might prompt the government to consider making a jury offer for the industry. Asset classifications for cryptocurrencies are common.
Primary coin offerings may be regulated, at least those that naturally take on the functional characteristics of securities. As a result, the proposal might be subject to CVM Regulation 400/03 and other CVM recommendations.
Virtual wealth is governed by anti-money for a variety of reasons. Cryptocurrency regulation laws have not yet been enacted by governments or institutions. Brazil is anticipated to join a group of crypto-enthusiasts, recently elected by Lula, taking serious steps in the sector, while nations like Vietnam are already making progress in the crypto ecosystem.
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