The law was approved by Brazil’s parliament but still requires executive approval.
While Brazil hasn’t made bitcoin (BTC) soft like El Salvador did last year, the South American country has passed laws that allow crypto payments nationwide.
The Chamber of Deputies of Brazil, the federal legislative body, has passed a regulation that approved the use of cryptocurrencies as a payment method in the country. Although this is a great development for crypto in Brazil, the law still requires the signature of the President of Brazil to sign it.
Passing the bill does not make any cryptocurrency legal in the country. However, the bill will include digital currency and flight programs and the definition of payment methods that are under the supervision of the country’s central bank.
After that, the government department will decide which company will be responsible for the maintenance. However, these signals will be considered securities under the jurisdiction of the Brazilian Securities and Exchange Commission (CVM).
In addition to defining crypto as a form of payment, the law allows the creation of licenses for crypto exchange platforms and for the holding and management of crypto by third parties. In addition to this, the law will require changes to make the difference between the company’s income and the workers’ income, to avoid another incident such as the failure of FTX.
In June, a similar plan was proposed to allow Brazilians to use crypto as a form of payment and protect their keys from being seized by the courts. The aim is to make crypto-assets an alternative to “tools of acquisition” of goods, services, or investments.
Meanwhile, although the failure of FTX has affected many parts of the crypto space, it will not affect the daily use of crypto for Brazilians like Thiago César, CEO of the Transfero Group, who is closely associated with the Brazilian crypto ecosystem.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up