This week, the Brazilian Chamber of Deputies may pass a cryptocurrency bill introduced earlier this year. According to Ricardo Barros, the leader of the Federal Government in the Chamber, the bill is prepared for discussion, but there are no reports of a possible vote as the Chamber is also prepared to discuss other time-sensitive bills.
This week, the Cryptocurrency Bill will be on the agenda
Brazil is nearing regulation of bitcoin assets and digital asset service providers (VASPs). Along with other time-sensitive bills, the bitcoin bill with the number 4.401/2021 is due for payment this week. The report was presented by Ricardo Barros, the head of the Federal Government in the Deputy Chamber of Congress, who confirmed that the bill will be voted on this week.
However, Brazil is in pre-election mode, with the presidential election scheduled for October 2. In order to avoid swaying the citizens towards one side or the other, Congress will avoid discussing sensitive matters. Nonetheless, if the cryptocurrency bill is ultimately voted on and approved, it must be sent to President Jair Bolsonaro for final approval. This week, the Deputy Chamber is also scheduled to discuss other crucial legislation, including a remote work bill.
Background on Cryptocurrency Regulation in Brazil
According to local media, the cryptocurrency bill could be presented to the Deputy Chamber for review this weekend. In Brazilian institutions, this endeavor has a lengthy and intricate history. The current bill is the product of the combination of two different initiatives undertaken by its proponents, who needed to pass a crypto-centric law this year.
In April, the Brazilian Senate approved the initiative, which aims to regulate cryptocurrency exchanges by establishing a single regulator. Similarly, the project legalizes cryptocurrency mining and creates tax exemption criteria for mining institutions that present green initiatives utilizing 100 percent renewable energy for the creation of mining farms.
In previous interviews, the legislators supporting this cryptocurrency bill have recognized that one of the primary motives for the bill is to punish cryptocurrency scammers in the United States. To this end, the project defines a new type of crypto-related crime and creates severe sanctions for individuals and organizations involved in this type of crime.