The Brazil Congress is attempting to pass a crypto legal framework by the end of the second quarter. According to sources, proponents of the many legislative initiatives presented in the Senate and Congress have declared that due to their similarities, they will pursue the unification of the programmes.
Brazilian Congress shifts gears to pass crypto legislation
The Brazilian Congress is expected to pass a final law regulating cryptocurrencies, before the conclusion of the second quarter. According to a source, the rapporteurs for two separate proposals aimed at regulating crypto interactions in the nation would integrate the two texts and offer a consolidated version. This document will be prepared by Senators Iraja Abreu and Deputy Aureo Ribeiro and is expected to be approved later this month.
According to the senator, a precise and defined cryptocurrency legal framework suited to the Financial Action Task Force’s (FATF) guidelines will make this industry more investor-friendly for those active in Brazil.
Motivation and New Features
The tremendous volume of fraudulent activity related to cryptocurrencies is one of the driving forces behind this rule. According to estimates, the cryptocurrency markets are worth over Rs 130 billion (around $27.6 billion) every year, including Rs 6.5 billion (roughly $1.38 billion) in fraudulent activities.
The goal of this initiative is to incorporate a description of cryptocurrency-related fraud in the Brazilian penal code, with penalties ranging from four to eight years in jail depending on the gravity of the offence.