The Brazilian Senate will vote on a bill that would make the country the largest in Latin America to regulate cryptocurrency.

The crypto bill was approved unanimously by the Senate Economic Committee on February 22, which could increase the chances of it being passed in a Senate vote. After it is passed by the Senate and the House of Representatives, it will be sent to President Jair Bolsonaro to be signed into law.

The legislation states that it contains “Guidelines for the Provision of Virtual Asset Services”. Brazilian Senator Iraja Abreu said on February 22 that he hopes the bill will deter various economic crimes committed using cryptocurrencies.

The objective of the project is to limit or reduce illegal activities such as money laundering, tax evasion and many other crimes. There is a legitimate market that makes up the vast majority of this market, but there are exceptions. ”
Senator Abreu, who originally proposed the bill in 2019, also told Bloomberg on February 22 that

“With the approval of these rules, the trend is that (cryptocurrency) will increasingly be used in supermarkets, commerce, and auto dealers.”
The bill, which is now nearly three years old, outlines various aspects of what constitutes a virtual asset (VA), broker, or stock exchange, as well as which federal government agencies will have jurisdiction over the case.

The Senate will vote on the Brazilian crypto bill.
The bill defines a virtual asset as “a digital representation of value that can be sold or transferred electronically and used to make payments or for investment purposes.”

According to the bill, a cryptocurrency intermediary or exchange is a legal entity that allows “participation in financial services and supplies,” exchanges between virtual assets and fiat currency, virtual assets and other virtual assets, the transfer of virtual assets and the storage of virtual assets.

If passed, the bill would make Brazil the largest Latin American country to regulate cryptocurrency. Probably the most famous Latin American country with such rules, El Salvador, whose president, Nyb Böckel, has been vocal about his ambitions to make the country independent of the US dollar through the use of Bitcoin (BTC).

Related Topics: Bitso, Latin America’s Leading Trader, Officially Expands in Colombia

Using cryptocurrencies can provide unexpected benefits. In El Salvador, the tourism industry has grown by 30% since last September when BTC became legal tender.

Source: CoinTelegraph