It is too early to say if Brazil will follow the example of El Salvador, as the current proposal shows the government speeding towards truly regulating the crypto business. Regulation means that exchanges, brokers, and dealers will have to get a government licence to operate, something that could lead the crypto market towards being more centralised and towards control from above by the authorities
The most proposed legislation, submitted on June 10 by Federal Deputy Paulo Martins, would allow Bitcoin (BTC) and other cryptocurrencies to be accepted as payment. The comprehensive legislative proposal is an addendum to the country’s current statute, Civil Procedure Code Article 835.
The planned inclusion would not immediately make crypto assets as legal cash in the nation. The new regulation will make it easier for the asset class to be utilised as a financial asset for exchange or payment, a method of access to goods and services, or an investment. The measure is now on its way to South American parliamentarians, who will conduct debates before the amendments are approved by the Senate and signed into law by the president.
The Brazilian crypto marketplace is one of the most active in Latin America, and the government has been working hard to approve a cryptocurrency law before the end of the year. Brazil’s crypto trade volumes have increased dramatically in recent years.
As a result, the nation’s federal judges are presently undergoing training on crypto-related issues, as the government expects a rise in such court cases. Mercado Bitcoin, Brazil’s biggest cryptocurrency exchange, has teamed up with the Stellar Development Foundation (SDF) to help build the country’s central bank digital currency (CBDC).
