2 November 2024
Brazil’s Senate Are Taking Steps To legalize Cryptocurrencies
Brazil, the Latin American country, plans to legally recognize digital currencies, with a new pro-Bitcoin bill heading to the Senate for its approval.
The bill was pending approval for the past three years, and it will now regulate the day-to-day uses of digital assets. The bill was first introduced in 2019, and it is now has been unanimously approved by the Senate’s Economic Affairs Committee (CAE) this week.
Initially, it was sent to the Senate plenary, then it will be forwarded to the Chamber of Deputies. Later it will be signed by President Jair Bolsonaro, making Brazil the latest and biggest country in Latin America to recognize Bitcoin. Although the president can also veto the bill and send it back to parliament. If he signed, it will become a law to officially recognize cryptocurrencies as “digital representations of value that can be traded or transferred by electronic means and used to make payments or for investment purposes.”
Once the bill is passed, Brazilians could make payments in Bitcoin while many countries including India, have refused to grant the digital currency. India is also taking the steps to legalise Bitcoin as an asset, claiming that allowing its use as a currency could destabilize the local economy.
The country will also recognize virtual asset service providers (VASPs), with the government issuing licenses to all Bitcoin firms. After the legalisation, the Crypto companies have to allow the strict code of conduct that includes being required to notify the Brazilian Financial Activities Control Council in case of a transaction suspected of money laundering.
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