Brazil’s Congress Aims to Pass Unified Encryption Framework in Coming Months

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Brazil’s Congress is trying to approve a cryptocurrency legal framework before the end of the second quarter. According to local media reports, supporters of the various bills introduced in the Senate and Congress said they would seek to unify the bills because of their similarity. This new unified draft introduces incentives for green mining and the inclusion of crypto-related fraud as a crime.

Brazil’s Congress Shifts into High Gear to Approve Crypto Laws

The Brazilian Congress has the disposition to approve a final law to regulate cryptocurrency before the end of the second quarter. According to local media, the rapporteurs of two different proposals to regulate crypto interactions in the country will combine these two documents to present a unified version. Senators Iraja Abreu and Deputy Aureo Ribeiro will prepare this text, which will be on track for approval later this month.

Abreu has already combined three proposals, and he will ask the Senate that these two new proposals (one in the Chamber of Deputies and one in the Senate) be treated and approved jointly. Abreu said:

I do everything in contact with the House rapporteur, who has done a very good job. The Central Bank technical team was also very helpful. The texts are similar and will converge into one.

The senator believes that with a clear and established cryptocurrency legal framework aligned with Financial Action Task Force (FATF) recommendations, this sector will be more investor-friendly for those interested in Brazil. He explained:

There is a market demand for a safer business environment and the need for criminal classification to avoid fraud, in addition to adapting Brazil to international agreements.

Motivation and new features

One of the main motivations for this law is the amount of fraudulent activity associated with cryptocurrency. According to reports, cryptocurrency markets move around 130 billion reais per year (about $27.6 billion), with 6.5 billion reals linked to fraudulent activities (about 1.38 billion dollars). dollars).

In fact, this project aims to include the definition of cryptocurrency fraud in the Brazilian penal code, which will carry penalties ranging from four to eight years in prison depending on the seriousness of the crime.

The project also places particular emphasis on mining, including incentives for green mining projects. This means that mining projects that adopt green energy alternatives will receive tax benefits. Abreu said:

Brazil can become the new mecca of green mining. It is the objective.

What do you think of the cryptocurrency bill that will be presented in Brazil? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price surge happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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