Brazil’s Senate Proposes a Bitcoin Law After Its Popularity in the Country Soars

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Great news for bitcoin fans in Brazil. In a plenary session earlier this week, the Senate approved a cryptocurrency bill that paves the way for official crypto regulation in the South American country. Of course, it hasn’t been signed into law just yet, but it’s a move in the right direction. In order for it to work, it needs approval from the Chamber of Deputies and an official signature on the dotted line by president Jair Bolsonaro. This will likely take by the end of the year and not a moment earlier.

The first draft of this bill was introduced in 2015. At that time, it allowed Brazil’s executives to create various rules on digital assets. It has evolved somewhat in the past few years, with many unknowns remaining still such as who regulates the crypto market. If the bill moves forward, it’ll make Brazil the biggest economy in South America that has a regulatory framework for cryptocurrencies.

Brazilians Love Bitcoin

The fact that Brazil’s government is pushing for this move is not a surprise. Brazilians love Bitcoin, earning as much as $2.56 billion from cryptos in 2021. The country is embracing crypto mining too. There’s a tax exemption rule for importing ASIC mining rigs into country which have become pretty popular in the past couple of years.

By greenlighting the crypto law, Brazil’s Senate shows that it’s set on regulating cryptocurrencies in a big way. Crypto regulation will be a responsibility of the government’s executive branch. There’s still no word on who would regulate digital assets, with the most likely candidates being the Central Bank or the SEC. The newly proposed laws will most likely attract crypto businesses to the country. Just like ASIC mining machines, it will probably open up the opportunity to easily import Bitcoin miners into the country.

The bill further reiterates punishment for crypto-related crimes including fraud. The bill’s first supporter, senator Arns, has particularly focused on this aspect. He believes that the punishment should fit the crime, depending if it’s a fraud, money laundering, or other white-collar crimes.

Not the First Time This Law Has Been Considered

Crypto regulation in Brazil has been talked on the senate floor since 2015. Federal deputy Aurelio Ribeiro has introduced a cryptocurrency regulation legislation for the first time that year, but it took some time before the Senate approved it. This new legislation is much different from the original one, and has yet to pass several filters before the president signs it into law.

If signed, it would be a huge opportunity for Bitcoin and cryptos. Brazil would be following in El Salvador’s footsteps and other countries such as Mexico that have pondered legalizing cryptocurrencies. There’s no question that the crypto sentiment around the world is changing, but still, even if Brazil’s proposed law is signed, cryptos won’t just push fiat money out of the equation.

For the millions of Bitcoin miners and investors in South America, it’s a move in the right direction.