The concept of cryptocurrency is gaining more and more traction among consumers in recent times. There are countries that are trying to inculcate crypto in their economic structures. Developing countries like Brazil and El Salvador are eyeing the use of crypto as potential support for their economies. Crypto can act as a hedge against inflation, and it can also provide new opportunities to unemployed individuals in these countries.
The rate of crypto adoption is relatively high in South Asian and Latin American region. Brazil is the largest country in Latin America. The latest reports show that the Brazilian Senate is moving to regulate cryptocurrencies. The Senate is set to vote on crypto regulating bill in the coming days. The bill was proposed by Senator Flávio Arna. It now awaits approval from the Senate.
Brazil expects a pro-crypto tenure ahead
The bill presented by Flávio Arna creates the labels crypto enterprises under ‘virtual service providers.’ Moreover, the bill was initially supported by the Senate’s Economic Affairs Committee. This is why it is anticipated that the bill will also be supported on the Senate floor.
If the bill gets the approval of the Senate and also the Lower House, then it will only need the signature of the Brazilian President Jair Bolsonaro. Once it passes all these stages, the law will become a part of Brazil’s legislative system.
Brazilian Senators believe that this bill can help in counteracting financial crimes in the country. Brazil has been vulnerable to several complications and crimes related to finances. Thus, this bill could be a potential breakthrough in the country’s financial setup.
Senator Irajá Abreu said that “Curb or restrict illegal practices, such as money laundering, tax evasion, and many other crimes. There is a market that is licit, legal, which is the vast majority of this market, but there are exceptions.”
It is expected that crypto adoption will experience a major increase in the country after the passing of the bill. The bill was in talks for over three years now. However, it is nearing completion with recent developments.
The law also obligates crypto service providers to preach about the risks associated with the crypto market. Users will also have to take an online test for their knowledge of risk management before investing in crypto. After El Salvador, Brazil will become the latest country from the region to regulate crypto.
