On Thursday, the President of Brazil, Jair Bolsonaro, approved a bill that regulates the use of cryptocurrencies in the country.
The bill, which was passed by both the Chamber of Deputies and the Senate, establishes a crime of fraud involving virtual assets, with penalties ranging from four to six years in jail and a fine. It also creates a license for “virtual service providers,” which will be required for digital asset companies, including exchanges and trading intermediaries.
This is a major step forward for the regulation of cryptocurrencies in Brazil, as it provides a legal framework for the use and protection of virtual assets
Under the new regulations, digital assets that are classified as securities will be supervised by the Brazilian Securities and Exchange Commission (CVM). Any assets that do not fall into this category will be overseen by a new regulatory body that is yet to be established.
This ensures that all digital assets are properly regulated and that investors are protected from fraudulent activity. It also allows for the development of a healthy and transparent cryptocurrency market in Brazil.