The new law establishes a crime of fraud involving virtual assets, with a penalty.
It also creates a “virtual service provider” license .
Brazil’s President Jair Bolsonaro approved a crypto regulatory bill recently passed by the country’s Chamber of Deputies and Senate on Thursday. The bill won’t be permitted to use cryptocurrencies like Bitcoin. Numerous digital currencies are included as authorized payment methods in recently signed legislation.
The new law establishes a crime of fraud involving virtual assets, with a penalty of between four and six years in jail plus a fine. It also creates a “virtual service provider” license. And opens the way for the establishment of a new federal body to oversee companies that deal in digital assets.
The Brazil’s Law Will Take Effect in 180 Days
Which federal agency might be in charge of overseeing cryptocurrency payments was not mentioned in the Brazil president, Bolsonaro’s announcement. As a result of the failure of FTX, the law also includes rules mandating exchanges to discriminate between the user and corporate assets. After the approval on Thursday, businesses will have 180 days to adapt to the new regulations.
Last Monday, the Securities Administrators of Canada issued regulations prohibiting the sale of cryptocurrencies on margin to Canadian clients. According to the announcement, any platform in the nation is regulated by securities legislation. Also included the crypto trading platforms that are yet to register.
Unregistered platforms will soon be assigned a deadline by which they must submit to their major regulator a pre-registration undertaking (PRU), in which they affirm their intent to adhere to the standards required of organizations that have already obtained registration. If they don’t, they can be subject to punishment. Several cryptocurrency companies, including Celsius, Voyager, and BlockFi, have filed for bankruptcy this year.