Brazil is looking to follow El Salvador’s lead and make bitcoin a legal tender. Regardless, an increasing number of governments are opting to embrace digital innovation. Legalizing bitcoin enterprises with favorable rules, on the other hand, presents a fantastic potential to bring in innovation, money, tax income, and raise the standard of living for the entire community.
Legalization of Bitcoin in Brazil
Brazilians may soon be able to buy and sell houses, vehicles and make other investments using Bitcoin, according to Federal Deputy Aureo Ribeiro. Brazilian Government putting in place standards so that you can trade, know where you’re buying from, and know who you’re dealing with.
According to reports, authorities in South American countries are considering adopting legislation that would permit the use of bitcoin for all types of transactions, large and small. The nation is prepared to vote on a cryptocurrency regulatory measure that will be brought to the Chamber of Deputies Plenary in the coming days by Federal Deputy Aureo Ribiero.
Exemplary Brazil’s Crypto Law
The approved “Bitcoin Law” allows for buying, selling and investing in this means. In view of Brazil’s Federal Deputy Aureo Ribeiro, “It may be anticipated that several more countries will adopt Brazil’s regulatory model.”
This asset has been recognized by the Brazilian government and will now be regulated by a government agency. The Brazilian government already agreed with the central bank and the Brazilian Securities and Exchange Commission (CVM) on the asset’s potential and recognition.
Aureo Ribeiro is certain that the proposed bill’s content will improve Bitcoin’s practicality in Brazil. He emphasized that the bill had broad Government support and had previously been approved by the Chamber of Deputies president, Arthur Lira, removing most remaining hurdles.
According to the research, Bitcoin adoption is favored by 48 percent of Brazilians, with 31 percent agreeing and 17 percent strongly agreeing.
The Strict Brazil’s Crypto Penalties
The penalties are part of a new law governing the crypto trade and payments. Brazilian lawmakers have approved harsher sanctions for cryptocurrency-related offenses, including money laundering.
Brazil’s Special Committee of the Chamber of Deputies passed a bill significantly toughening the penalty for financial crimes involving cryptocurrencies such as Bitcoin (BTC). The latest regulatory changes in bill 2303/15 include increasing penalties from one-third to two-thirds of the laundered money.
Deputy Aureo Ribeiro noted that around 300,000 people were harmed by “financial pyramid schemes with cryptocurrency” in Rio de Janeiro. He emphasized that without regulation, people are helpless.
The Bottom Line
Although bitcoin is almost a decade old, many governments still lack specific methods for restricting, regulating, or prohibiting it. Due to bitcoin’s decentralized nature, many governments have struggled to find a way to allow legal use while prohibiting fraudulent transactions.
Numerous countries are still considering how to regulate bitcoin and some countries have adopted varying rules. Several of them specifically mention Bitcoin, allowing it to be used as money, taxed, purchased and traded as a commodity.