This week, Brazil’s Chamber of Deputies may approve a cryptocurrency bill introduced earlier this year. According to the leader of the federal government in the House, Ricardo Barros, the bill should be discussed, but there are still no reports on a possible vote because the House should also discuss other urgent bills.
The cryptocurrency bill on the agenda will be discussed this week
Brazil is moving closer to regulating cryptocurrency assets and virtual asset service providers (VASPs). The cryptocurrency bill, identified by number 4.401/2021, is expected to be dealt with this week, alongside other urgent bills. The report was written by the head of the federal government in the Deputy House of Congress, Ricardo Barros, who declared that the bill can be voted on this week.
However, Brazil is in pre-election mode, with presidential polls due to take place on October 2. As such, the congress might not discuss sensitive issues to avoid swaying the electorate to one side or the other. However, if the cryptocurrency bill is finally passed and approved, it should be sent back to President Jair Bolsonaro for his final sanction. The Deputy House is also expected to discuss other important legislation this week, including a remote work bill.
Context of Cryptocurrency Regulation in Brazil
According to local media, the cryptocurrency bill could be presented this weekend for consideration by the Chamber of Deputies. This project has had a somewhat complicated history in Brazilian institutions. The current bill is the result of the combination of two different projects as part of the work of its supporters, who wanted to approve a crypto-centric law this year.
The project was approved by the Brazilian Senate in April and seeks to regulate cryptocurrency exchanges by creating a single regulator to deal with the issue. In the same way, the project legalizes cryptocurrency mining, and establishes tax exemption rules for mining institutions that present green projects using 100% renewable energy for the establishment of mining farms.
In previous interviews, the MPs behind this cryptocurrency bill said that one of the main motivations behind the law was to punish cryptocurrency scams in the country. To this end, the draft also defines a new type of crypto-related crime and establishes tough penalties for individuals and companies involved in this type of crime.
What are your thoughts on the possible approval of a cryptocurrency-centric bill in Brazil? Tell us in the comments section below.
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