Brazilian Senate Passes Cryptocurrency Bill

The Brazilian Senate has passed a bill that regulates the cryptocurrency market in the country. The aim is to define rules to regulate the trading of assets and guarantee consumer protection guidelines as well as to combat illegal activities in this space.

The proposal sets out a framework that includes the regulation of crypto exchanges, which would fall under the oversight of the Brazilian Central Bank and the CVM Securities and Exchange Commission.

In addition, the Brazilian Cryptocurrency Bill also defines rules related to consumer protection, as well as measures to combat money laundering as well as other illegal practices, such as the fraudulent management of crypto exchanges, terrorist financing and weapons of mass destruction.

The current bill will not encompass non-fungible tokens (NFTs), but senators expect this to be addressed as part of a separate proposal after the cryptocurrency regulations are approved. The bill will now be voted on by the lower house of Congress and then signed into law by the president.

Brazil and Indonesia lead the world in crypto adoption, according to research published earlier this month by crypto exchange Gemini, with 41% of respondents in both countries saying that they own the crypto. The percentage was 20% in the US and 18% in the UK in comparison.

Digital Currency Plans

Another digital currency project currently underway in Brazil is the launch of the digital version of the Brazilian Real. Earlier this month, the president of the country’s Central Bank, Roberto Campos Neto, said the Real Digital project was on track to launch the rewards in late 2022.

Brazil’s plans to launch its central bank digital currency (CBDC) are based on guidelines established last year, which took into account the positive impact, as well as the risks of having a real digital, such as data protection and cybersecurity, as well as regulatory issues.

The guidelines emphasize the possibility of developing new market offerings based on innovations such as smart contracts, the Internet of Things (IoT) and programmable currency. Digital real will also be able to be used in retail payments and will allow users to transact online and possibly make payments offline.

As an extension of the physical currency, the distribution of the digital real will be carried out by the depositories of the national financial system and the Brazilian payment system, without remuneration for these institutions.

The launch of digital real is part of the central bank’s program for the modernization of the Brazilian payments industry, which included the launch of instant payments last November and the implementation of Open Finance.

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Brazilian Senate Passes Cryptocurrency Bill

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