Brazil Might Approve Its Cryptocurrency Law This Week

This week, the Chamber of Deputies in Brazil might approve a cryptocurrency bill introduced earlier this year. According to the leader of the Federal Government in the Chamber, Ricardo Barros, the bill is set to be discussed, but there are still no reports on a possible vote as the Chamber is set to also discuss other time-sensitive bills.

Cryptocurrency Bill on Agenda to Be Discussed This Week

Brazil is getting closer to regulating cryptocurrency assets and virtual asset service providers (VASPs). The cryptocurrency bill, identified with the number 4.401/2021, is set to be addressed this week, alongside other time-sensitive bills. The report was made by the leader of the Federal Government in the Deputy Chamber of Congress, Ricardo Barros, who stated that the bill can be voted on this week.

However, Brazil is in pre-election mode, with the presidential ballot set to happen on October 2. As such, the congress might not discuss delicate matters to avoid swaying the electorate towards one side or another. However, if the cryptocurrency bill is finally voted and approved, it would have to be remitted to president Jair Bolsonaro for its final sanction. The Deputy Chamber is also set to discuss other significant laws this week, including a remote work bill.

Cryptocurrency Regulation Background in Brazil

According to local media, the cryptocurrency bill might be presented this weekend to be reviewed by the Deputy Chamber. 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 proponents, 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 earlier interviews, the deputies behind this cryptocurrency bill project have stated that one of the biggest motivations behind the law is to punish cryptocurrency scams in the country. For this purpose, the project also defines a new kind of crypto-related crime and establishes harsh penalties for individuals and companies involved in this kind of crime.