Brazil has become the latest country to legalize cryptocurrency as a method of payment. This is a positive development for the crypto industry and could lead to increased adoption of digital currencies. Brazil’s new legislation provides a clear legal framework for businesses that want to use cryptocurrencies, and it should help to reduce uncertainty about their legality. This could pave the way for the wider adoption of cryptocurrencies in Brazil and set an example for other countries around the world.
Bitcoin is still not a legal tender
Brazil has long been a hotbed for cryptocurrency activity, and the country’s central bank has been monitoring the space closely. However, until recently, there was no legal framework in place for crypto assets. This changed when Brazil passed a law that legalized cryptocurrencies as means of payment throughout the country. The move was seen as a major victory for crypto investors and businesses in Brazil, and it is expected to pave the way for increased adoption of digital assets in the country. While Brazil has not yet designated Bitcoin as a legal tender, the passage of this law is a major step in that direction.
Awaiting Approval from the President
The Chamber of Deputies of Brazil took a step forward in the country’s cryptocurrency regulation by passing a regulatory framework for crypto assets. The bill, which was proposed by Deputy Ferrão, aims to establish a regulatory environment for cryptocurrencies that recognizes their potential as a payment method. In order to become law, the bill must now be signed by the president of Brazil. If enacted, the law would allow businesses to accept cryptocurrencies as payment and would create a legal framework for crypto exchanges and other service providers. This would represent a significant development for the cryptocurrency industry in Brazil and could lead to increased adoption of crypto assets.
Regulatory Clarity for Stakeholders in Brazil
Aside from classifying crypto as a payment method, the law allows for the creation of licenses for crypto exchange platforms as well as third-party custody and management of crypto. In addition, to prevent another situation like the FTX collapse, the law will necessitate exchanges to clearly distinguish between company and user funds.
Brazil Driving the Crypto Adoption
Brazil has made significant strides in cryptocurrency regulation and investor adoption. It currently has the most cryptocurrency ETFs in Latin America, and the majority of the country’s major banks and brokers provide some form of exposure to virtual currency investments or similar services such as custody or token offerings. Even Ita, one of Brazil’s country’s largest banks, is working on tokenizing assets as part of its future suite of investor services.