Brazil has been emerging as one of the most enthusiastic countries towards the adoption of cryptocurrencies.
The country is badly hit by the recession and the high inflation rates and has found cryptocurrencies to be a solution to dealing with these problems.
Therefore, the country has been into cryptocurrencies and has recently taken a very significant step toward the legalized adoption of cryptocurrencies.
Bill Presented for Crypto Legalization
The government and the administration of Brazil have recognized the importance of adopting cryptocurrencies. They know it will be very crucial that their public adopts cryptocurrencies.
There was a time when the Brazilian economy was among the top economies in the entire world. From the year 2000 to 2012, its economy was among the fastest-growing economies across the globe.
The country has been badly hit by the supply chains and export/imports, which is due to the poor administrative measures taken after 2012.
However, the country is now making the right decisions in the eyes of the crypto community. It considers cryptocurrencies to be the savior of their sinking economy.
The country’s economy will eventually start rising and regain its place among the top economies, which is among the highest motivations behind the adoption of cryptocurrencies.
This is the reason why the Senate and the Chamber of Deputies are all on the same page. They recently presented a bill for the induction of cryptocurrencies into Brazilian law.
The bill was for the regulation of the cryptocurrencies in the country and grants cryptocurrencies the ability to be used locally.
Brazilian President Approved the Bill
Initially, it was expected that the President of Brazil, Jair Bolsonaro, would demand some modifications to be made to the bill.
Turns out, he did not waste a single second and proceed with approving the bill. With the approval, cryptocurrencies, especially Bitcoin have a legal and regulated status in the country.
Bill was signed on December 22
It was confirmed by local media sources that the president of Brazil had signed the new bill into law on December 22.
Following the approval, the crypto has a legal status to operate in the country. The administration will work on the development and implementation of a regulatory framework around crypto.
The regulatory framework will provide information and guidelines surrounding the trading of cryptocurrencies. Most importantly, it will guide the country to use Bitcoin as a mode of payment.
180 Days for Local Crypto Firms
With the new law in place governing cryptocurrencies, the local entities offering crypto-related services will have to adhere to them.
However, the government has announced a grace period for the convenience of cryptocurrency firms to get used to the new rules.
Starting from December 22, the crypto firms based in Brazil have 180 days to get used to the new rules and policies introduced with the new bull.
With the 180 days coming to completion, each firm operating within Brazil and offering crypto-related services will be required to adhere to the new rules.
Even the cryptocurrency-related service providers based outside of Brazil but offering services in the country will be required to do the same.
Any entity found not adhering to the regulatory guidelines and the new rule will be dealt with strict disciplinary actions.
Going forward, the crypto firms will be required to have a virtual service provider license them. They have to acquire it from the regulatory authority tasked with the approval of licenses for crypto services.
The process would also include the identification of digital assets with commodities and securities. If any asset is established as a security, it will be handled by the CVM.
Brazil is yet to announce which regulatory authority will approve the licenses for the crypto and commodity-related assets.
With the crypto industry being legalized, it is only a matter of time before Brazil will start imposing taxes on crypto profits. Therefore, the country will start profiting from the legalization of cryptocurrencies.