Before the end of Q2, the Brazilian Congress is attempting to pass a cryptocurrency legal framework. Proponents of the many legislative initiatives presented in the Senate and Congress have claimed that due to their similarities, they will endeavor to unify the projects. This new unified scheme includes incentives for green mining as well as the criminalization of crypto-related fraud.
The Brazilian Congress Shifts Pace in order to Pass Crypto Legislation
Before the end of the second quarter, the Brazilian Congress has the intention of passing a final law regulating cryptocurrencies. The authors of two separate proposals aimed at regulating crypto interactions in the country would integrate the two texts to provide a united version. This text will be prepared by Senators Iraja Abreu and Deputy Aureo Ribeiro, and it is expected to be approved later this month.
Abreu has already integrated three suggestions and will urge the Senate to review and adopt these two new measures (one in the Chamber of Deputies and one in the Senate). According to Abreu,
I’m working closely with the Chamber’s rapporteur, who did an excellent job. The technical personnel of the Central Bank has also been quite helpful. The texts are similar and will be combined into a single document.
According to the senator, a clear and established cryptocurrency legal framework suited to the Financial Action Task Force’s (FATF) recommendations will make this industry more investor-friendly for those interested in Brazil. He elaborated:
In addition to conforming Brazil to international accords, there is a market desire for a safer business environment and the necessity for criminal classification to avoid fraud.
Types of Innovation and Purpose
The tremendous volume of fraudulent activity related to cryptocurrencies is one of the driving forces behind this rule. According to reports, the cryptocurrency markets are worth over R$130 billion (around $27.6 billion) per year, with R$6.5 billion (roughly $1.38 billion) in potential fraud.
Indeed, the goal of this project is to include a description of cryptocurrency-related fraud in the Brazilian penal code, with penalties ranging from four to eight years in prison relying on the gravity of the offense.
Mining is also given specific attention in the initiative, with incentives for green mining operations included. This means that mining projects that use green energy will be eligible for tax breaks. According to Abreu,
Brazil has the potential to become the next green mining capital of the world. The goal is to achieve this.
Also Read: For the very first time in Brazil, a Bill to Authorize Cryptocurrency is being Debated in the Senate
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