Brazil will regulate cryptocurrencies.
This is a historic day for cryptocurrencies in Brazil, as the Senate has finally approved the country's first bill to regulate the cryptocurrency market. The bill has yet to be approved in the Chamber of Deputies and then approved by President Jair Bolsonaro.
The adoption of cryptocurrencies is gaining momentum in Brazil. The nation is keen to regulate cryptocurrencies to keep up with the growing market.
The legislation has established specific rules for virtual goods service providers in the country, such as preventing money laundering and asset concealment, terrorist financing, among others. The Senate has imposed jail time and fines for violating the rules.
Last year, the president of the central bank, Roberto Campos Neto, said that the purchases of cryptocurrencies affect the figures of imports from Brazil.
In addition, the country's beach town of Rio de Janeiro said last month that it would buy Bitcoin for the city's reserves and offer a 10% tax cut when paid in Bitcoin, after carefully studying the possible legal framework. . In addition, Rio Mayor Eduardo Paes has promised to launch his own currency nicknamed "Crypto Rio".
31% of Brazilians agree that Bitcoin should become the official currency, and 17% "strongly" agree. Another 30% of the country's citizens are reluctant to adopt cryptocurrency, while 21% are against the idea.
Brazil has 1.4 million registered cryptocurrency users
NFTs issued in Brazil allow people to invest in cryptocurrencies in a regulated manner, while also allowing more conservative investors to try investing in cryptocurrencies.
The three largest regulators in Latin America are Brazil, Mexico and Colombia.
Accustomed to economic crises, Latin Americans believe the current crisis could increase interest in cryptocurrencies.
The draft law on cryptocurrencies
The text of the law provides for some amendments to the Brazilian Penal Code, which includes some crimes and irregularities in the cryptocurrency market, which would be configured as crimes against the country's financial system. The draft text provides for imprisonment for a term of up to eight years for anyone who fails to comply with the regulations.
After all, what is a cryptocurrency?
A crypto-asset can be a cryptocurrency, an NFT or any other type of asset that comes from a blockchain, whatever it is, Bitcoin, Ethereum, Solana or anything else that could be incorporated in the future.
It is different from any other fiat currency - such as the dollar or the real, for example - because it is issued by a decentralized body, while the cryptocurrency is issued by a decentralized organization.
The term "cryptoactive" comes from the term cryptography, which is a kind of additive that makes a text, financial asset, or even a data file "indecipherable" to its readers, without first going through it. such a reading protocol. given away.
Such a process, of a draft law, recognizes the existence of this market and therefore makes it more robust in Brazil.
The same process is already happening in other countries, such as the United States and even in the countries that make up the European Union, in addition to the fact that it already exists in Asian markets.
Slowly, slowly it will become a world currency and will be used as a commercial use.