Brazilian Senate plenary approves bill to regulate crypto transactions reports CoinDesk. There are still a few approvals needed before the bill comes to action. First, it needs to be passed by the Chamber of Deputies, and even after that, the executive branch can practice its veto power over it. But if it goes through, it will be a positive step for the industry in Brazil.
The crypto regulation bill
Brazil’s primary reason for this new bill seems to oversee any form of illegal activities in the industry. The service providers of crypto will be responsible for crimes against Brazil’s financial system like any other traditional system. The bill will also ensure that a separate regulatory body is assigned to crypto to oversee the industry. The Brazillian SEC wouldn’t be doing so anymore and might only track new ICOs.
This new bill was introduced by Senator Flávio Arns and also points out at jail terms is a punishable offense is done. Criminals might face 2-6 years in prison for crimes committed in the aspect of virtual assets. The jail period was reduced from 4 to 8 years after a request made by Senate president Rodrigo Pacheco.
Brazil’s current crypto policies
The crypto policies in Brazil have been a hit or miss till now. There have been moments when the authorities have spoken against the industry, but lately, they have been supporting it. The country first opposed the adoption of crypto in 2015, when a bill to regulate the industry was first introduced. Some authorities have also tried to outright ban crypto as a part of their anti-money laundering and anti-corruption initiatives.
Taxation is one of the essential parts of crypto regulation, and that has been taken care of in Brazil. Exchanges are required to report their operations to Brazil’s Federal Tax Revenue (RFB). Users also need to report transactions that are over 30,000 BRL. Tax rates are 15% on capital gain but only if the user sells more than 35,000 BRL in a month. Even though we can’t call it the best, the regulations are a lot better than in many other countries.
What are your thoughts as the Brazilian Senate plenary approves bill to regulate crypto? And do you think this will make things favorable for the industry in Brazil? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.