Brazil Crypto Acceptance Official
Although Bitcoin has not been officially recognized as legal cash in Brazil, the country has enacted a law recognizing crypto as a valid payment method across the country, providing a regulatory boost to the growth of the digital currency industry.
The regulatory framework established by the Chamber of Deputies in Brazil makes it possible to utilize cryptocurrencies as legal tender. Signed under the code PL 4401/2021, the legislation expands the meaning of "payment agreements" to include virtual currencies and airline frequent flyer incentives (the popular "miles").
Brazil crypto acceptance
Legislation approving cryptocurrency payments for goods and services, but stopping short of making them legal tender, has already passed both houses of parliament and only needs to be signed by the President of the Republic to become law.
When it comes to Bitcoin regulation and investor adoption, Brazil has made significant strides. As well as having the largest number of cryptocurrency exchange-traded funds (ETFs) in Latin America, most of the country's main banks and brokers also provide services related to cryptocurrency investments, such as custody or token offerings. One of Brazil's major private banks, Ita, is also looking into the possibility of tokenizing assets as part of a future suite of investor services.
Only tokens classified as securities fall within the jurisdictions of the CVM, Brazil's counterpart to the SEC.
After the law goes into effect, it will be up to the executive arm of government (the president and its ministers) to decide the body or institution in charge of regulating the situation. The country's Central Bank and the CVM have been the primary public agencies active in the area thus far.
The Brazil crypto law also regulates the provision of services related to the custody and administration of cryptocurrencies by independent third parties, such as Bitcoin trading platforms. Although the law does not address the issue of a digital currency by the country's central bank, significant progress has been achieved in this area.
A crucial part of the Brazil crypto rules is that service providers must keep their own money separate from their customers' money to avoid a repeat of the FTX case, in which the exchange is accused of utilizing its customers' money for its financial operations.
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