Brazil didn’t designate bitcoin as legal tender, but it did the next-best thing: It passed a law legalizing cryptocurrencies as a means of payment nationwide, boosting digital currency adoption and ecosystem expansion.
Brazil's House of Representatives has approved a regulatory framework to legalize cryptocurrencies as a form of payment in the country.
Signed under code PL 4401/2021, the document provides for the inclusion of virtual currencies and airline frequent flyer awards, commonly referred to as “miles,” within the definition of a “payment agreement,” under the supervision of the country’s central bank.
Already approved and requiring only the signature of the President of the Republic for enactment, the law grants legal status to payments for goods and services made in cryptocurrencies — but not legal tender.
Brazil has made strides in cryptocurrency regulation and investor adoption. It currently has the largest number of cryptocurrency ETFs in Latin America, and most major banks and brokers in the country currently offer some type of cryptocurrency investing or similar services, such as custody or token offerings. Even Itaú, one of the largest private banks in Brazil, is working on tokenizing assets as part of a range of services for investors in the future.
Tether USDT Estará Disponible En 24.000 Cajeros Automáticos En Todo Brasil
Once the law comes into force, it will be up to the executive branch of the government (the president and his ministers) to decide which agency or office will oversee the matter — only tokens classified as securities will fall under the jurisdiction of the CVM, the Brazilian equivalent of the SEC.
Until today, the public institutions most involved in this area have been the country's own central bank and the CVM. In addition, the law stipulates the rules for the operation of cryptocurrency trading platforms, as well as the custody and management services of cryptocurrencies by trusted Carders.
The law does not mention any disposition regarding the issuance of a central bank digital currency; however, the country has already made significant progress in this regard.
One of the most important aspects of this regulation is that service providers are obliged to keep their funds separate from their clients’ funds to prevent a situation similar to FTX where an exchange uses its clients’ funds for itself financial operations.
The law avoids provisions that offer tax benefits to cryptocurrency miners and acknowledges that digital currencies facilitate criminal activity due to their pseudonymous nature, calling for "closer oversight" of the industry.
Brazil's House of Representatives has approved a regulatory framework to legalize cryptocurrencies as a form of payment in the country.
Signed under code PL 4401/2021, the document provides for the inclusion of virtual currencies and airline frequent flyer awards, commonly referred to as “miles,” within the definition of a “payment agreement,” under the supervision of the country’s central bank.
Already approved and requiring only the signature of the President of the Republic for enactment, the law grants legal status to payments for goods and services made in cryptocurrencies — but not legal tender.
Brazil has made strides in cryptocurrency regulation and investor adoption. It currently has the largest number of cryptocurrency ETFs in Latin America, and most major banks and brokers in the country currently offer some type of cryptocurrency investing or similar services, such as custody or token offerings. Even Itaú, one of the largest private banks in Brazil, is working on tokenizing assets as part of a range of services for investors in the future.
Tether USDT Estará Disponible En 24.000 Cajeros Automáticos En Todo Brasil
Once the law comes into force, it will be up to the executive branch of the government (the president and his ministers) to decide which agency or office will oversee the matter — only tokens classified as securities will fall under the jurisdiction of the CVM, the Brazilian equivalent of the SEC.
Until today, the public institutions most involved in this area have been the country's own central bank and the CVM. In addition, the law stipulates the rules for the operation of cryptocurrency trading platforms, as well as the custody and management services of cryptocurrencies by trusted Carders.
The law does not mention any disposition regarding the issuance of a central bank digital currency; however, the country has already made significant progress in this regard.
One of the most important aspects of this regulation is that service providers are obliged to keep their funds separate from their clients’ funds to prevent a situation similar to FTX where an exchange uses its clients’ funds for itself financial operations.
The law avoids provisions that offer tax benefits to cryptocurrency miners and acknowledges that digital currencies facilitate criminal activity due to their pseudonymous nature, calling for "closer oversight" of the industry.