© Reuters. Brazilian President Approves Cryptocurrency Bill Regulating the Use of Bitcoin (BTC) as a Payment Method
On Thursday, the President of Brazil, Jair Bolsonaro, approved the complete cryptocurrency regulation bill that was recently passed by the House of Representatives and the Senate of the country without making any amendments.
Brazilian President Signed Cryptocurrency Bill into Law
The official Brazilian magazine reported on Thursday, December 22, that President Jair Bolsonaro signed a bill into law establishing a complete regulatory framework for the transaction and use of payments.
Once approved by the president, crypto companies will have 180 days to adapt the new rules. The law creates a “virtual service provider” license, which companies including exchanges and commercial intermediaries must have.
The law also requires these companies to distinguish between user assets and company assets. Cryptocurrencies that are considered securities will be regulated by the Brazilian Securities and Exchange Commission (CVM), while others will be overseen by a different body that has yet to be decided.
Cryptocurrency adoption growing in South America
While the law does not offer legal tender for cryptocurrencies like in El Salvador, it marks a significant step forward for the crypto industry in Brazil, which is building to become a hub for blockchain and financial services. digital product.
The growth in Brazil reflects the growing adoption of cryptocurrencies in South America. According to the data, neighboring Argentina currently ranks as the country with the fourth highest rate of crypto ownership.
- The executive branch of the government will choose which body oversees cryptocurrencies, with the Central Bank of Brazil (BCB) being the sole exception, unless BTC is used as a payment method.
Why should you care?
The legalization of Bitcoin as a payment option still makes sense for the rapidly growing crypto economy and is likely to spur greater activity in the country.
Read more about Brazilian crypto laws at:
Brazil accepts cryptocurrencies as a means of payment
Read about crypto adoption in Brazil below:
The number of crypto investors doubles in Brazil in the third quarterartery