The Brazilian Senate and Chamber of Deputies recently enacted a complete crypto regulation bill, and on Thursday, President Jair Bolsonaro signed it into law without making any changes.
The Cryptocurrency Law of Brazil was signed into law by the President on June 5th
🇧🇷 Brazil just passed a bill to regulate #Bitcoin and crypto for payments – it's officially law! 🙌
— Bitcoin Archive (@BTC_Archive) December 22, 2022
According to the official Brazilian journal, on December 22nd, President Jair Bolsonaro signed a bill into law that created a comprehensive legal framework for the trade and usage of Bitcoin as a payment method.
After the president approval, the crypto industry will have 180 days to comply with the new regulations. Companies, including exchanges and trade intermediaries, must get a “virtual service provider” license under the new legislation.
These businesses must establish a clear boundary between customer and corporate assets. While the Brazilian Securities and Exchange Commission (CVM) will monitor cryptocurrencies classified as securities, other cryptos will be governed by a different body which is yet to be finalised.
In South America, Crypto is Gaining Popularity
Even while the legislation doesn’t make cryptocurrencies legal money as it did in El Salvador, it’s still a big deal for the crypto business in Brazil, which is rapidly growing to become a center for digital assets and blockchain. Data shows that Argentina, a neighboring nation, currently has the fourth highest prevalence of crypto ownership, behind Japan, South Korea, and Switzerland.