Brazil’s crypto bill received approval from the House of Representatives before being approved by the financial executive branch

Brazil is one of several countries willing to contribute to the global crypto sector with its experiment under secure legal regulations. Brazil’s crypto bill, which aims to tighten licensing requirements by industry players among other proposals, has received long-awaited approval from the Brazilian Chamber of Deputies. This brings the bill closer to becoming law after it receives approval from the financial executive branch. The bill was drafted by Representative Oero Ribeiro.

The number of companies holding crypto assets reached a record 12,053 in Brazil this year. The country’s tax authority, Receita Federal do Brasil (RFB), has published a Report in October, acknowledging a six percent increase from the 11,360 companies that announced their holdings of cryptocurrency in July this year.

medium expansion digital assets In the sector, it is only natural that the Brazilian government will accelerate efforts to regulate the industry.

The bill proposes to create an internal committee that would keep cryptocurrency activity in check. The authority also plans to create a mandate for crypto companies to obtain a “Virtual Service Provider” license before starting operations in the country.

bitcoinfollowed by a stablecoin Rope The two most popular cryptocurrencies held by Brazilian organizations, RFB claimed In his findings two months ago.

Once the bill has the last of the required permissions to pass, existing cryptocurrencies in Brazil will be given 180 days to align their operations according to the rules.

in May, nubankBrazil’s largest digital bank by market capitalization has started offering Bitcoin and Ether to be bought or sold on its platform. Nubank’s decision was prompted by the growing number of cryptocurrency investors in the region.

Earlier this year, Rio de Janeiro announce that from 2023, its residents will be allowed to pay property taxes in the form of cryptocurrencies.

Amidst an upsurge in crypto activity, Brazil has already started engaging law enforcement agencies to keep the crypto sector in check.

Special investigation unit. faithful In the cryptocurrency industry, it was also established in July this year by the Public Prosecutor’s Office of the Central-West Federal District of Brazil.

The unit consists of members of the public prosecution, the judiciary and the police.

As part of its crypto laws, Brazil is focusing on imposing related fines and prison sentences for those who misuse cryptocurrencies for money laundering, fraud, and other white-collar crimes.