The Brazilian Congress is attempting to pass a cryptocurrency legal framework before the end of the second quarter. According to local media reports, the proponents of the various law projects presented in the Senate and Congress have stated that they will seek unification of the projects due to their similarity.
This new unified project offers incentives for green mining as well as the criminalization of crypto-related fraud.
The Brazilian Congress is shifting gears in order to pass crypto legislation.
The Brazilian Congress intends to pass a final law regulating cryptocurrency before the end of the second quarter. According to local media, the rapporteurs of two separate proposals attempting to regulate crypto interactions in the country will combine these two documents in order to present a unified version of them. Senators Iraja Abreu and Deputy Aureo Ribeiro will draught the text, which is expected to be approved later this month.
Abreu has already combined three proposals, and he will ask the Senate to process and approve these two new proposals (one in the Chamber of Deputies and one in the Senate) jointly. According to Abreu:
“I’m doing everything in contact with the Chamber’s rapporteur, who did a very good job. The Central Bank’s technical team has also been very helpful. The texts are similar and will converge into one.”
The senator believes that a clear and established cryptocurrency legal framework adapted to the Financial Action Task Force (FATF) recommendations will make this sector more investor-friendly for those interested in Brazil. He elaborated:
“There is a market demand for a safer business environment and the need for criminal classification to avoid fraud, in addition to adjusting Brazil to international agreements.”
Motivation and New Features
The sheer volume of fraudulent activity associated with cryptocurrency is one of the primary motivations for this law. According to reports, the cryptocurrency markets move around R$130 billion (approximately $27.6 billion) per year, with R$6.5 billion reals (approximately $1.38 billion) linked to fraudulent activity.
Indeed, the goal of this project is to include a definition of cryptocurrency-related fraud in the Brazilian penal code, with penalties ranging from four to eight years in prison depending on the severity of the crime.
The project also prioritizes mining, including incentives for green mining projects. This means that mining projects that use green energy will benefit from tax breaks. According to Abreu:
“Brazil can become the new green mining mecca. That is the objective.”
To read our blog on “USA is blaming North Korean hackers for $625M cryptocurrency heist” click here.
