The law was approved by the Chamber of Deputies of Brazil but still requires the approval of the executive branch to be enacted. 6562 Total views 70 Total shares Listen to article 0:00 News While Brazil has not made Bitcoin (BTC) legal tender as El Salvador did last year, the South-American nation has passed a law that legalizes crypto payments throughout the country.
The Chamber of Deputies of Brazil, a federal legislative body, has passed a regulatory framework that legalizes the use of cryptocurrencies as a payment method within the country. While this makes significant progress for crypto within Brazil, the law still requires the signature of the president of Brazil for it to be enacted.
The passing of the bill does not make any cryptocurrencies legal tender within the country. However, the bill will include digital currencies and air mileage programs in the definition of payment methods that are under the supervision of the countrys central bank.
After being passed into law, the governments executive branch must decide which office will be will be in charge of supervision. Still, tokens that will be considered securities will remain under the jurisdiction of the Brazilian Securities and Exchange Commission (CVM).
Apart from designating crypto as a payment method, the law enables the creation of licenses for crypto exchange platforms and for custody and management of crypto by third parties. In addition to this, the law will require exchanges to make a clear distinction between company and user funds, to avoid another incident like the FTX collapse.
Related: UAE regulator revokes FTX license amid the exchanges collapse
Back in June, a similar proposal was issued to allow Brazilians to use crypto as a means of payment and protect their private keys from being taken by courts. The proposal aims to make crypto assets a means of exchange and an instrument of access to goods, services or investments.
Meanwhile, while the FTX collapse has impacted many sectors within the crypto space, it will not affect everyday crypto use for Brazilians according to Thiago Csar, the CEO of Transfero Group, which is closely tied to the Brazilian crypto ecosystem. #Brazil #Payments #Adoption #Bitcoin Payments #Exchanges #Regulation Related News The concept and future of decentralized Web3 domain names Festivals in the metaverse: How Web3 projects are taking culture virtual Some central banks have dropped out of the digital currency race Belgium says BTC, ETH and other decentralized coins are not securities SEC chairs crypto oversight strategy in question as ecosystems collapse
