Brazil's president has just signed the cryptocurrency bill into law.
The Brazilian Chamber of Deputies had previously approved the law.
The law allows public institutions to hold cryptocurrency.
Its first crypto regulatory framework for the use of digital currencies as means of payment.
On November 30, the Brazilian Chamber of Deputies, a federal legislative body, passed a regulatory framework that legalizes the use of cryptocurrencies as a payment method within the country. And now, with President Jair Bolsonaro's approval, the proposal has become law.
Now, the government's executive branch must decide which office will be in charge of oversight. However, tokens that are considered securities will remain subject to the jurisdiction of the Brazilian Securities and Exchange Commission.
The aforementioned law paved the way for the establishment of a federal agency to regulate firms dealing with virtual assets. Furthermore, the law will make it mandatory for crypto firms operating in the South American country to comply with the new laws, imposing fines and other penalties in the event of a violation.
Even financial services encompassing virtual assets are covered by the proposed legislation. In addition, reports noted that the Central Bank of Brazil will oversee the use of Bitcoin for payment.
Aside from this, the law also allows public institutions to hold cryptocurrency. This indicates that the Brazilian government is enacting every precaution to prevent another FTX-like event in the future.
Brazil's announcement of adopting a legal crypto regulatory framework comes at a time when the global crypto market is experiencing FOMO. However, with Brazil’s enactment of cryptocurrency law, other South American countries will undoubtedly follow the same path.
What do you think, which South American nation is next in line? Share your thoughts in the comment section below.
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