Brazil Approves Bill Regulating Use Of Crypto As Payment

PNT

Nov 30, 2022•1 min read

Brazil Approves Bill Regulating Use Of Crypto As Payment

Before becoming law, the bill still needs to be approved by the executive branch.

Brazilian lawmakers have established a comprehensive legislative framework for cryptocurrency trade and use in the country.

The new regulations, which were approved on Tuesday night in Brasilia, the nation's capital, acknowledge bitcoin as a digital representation of value that can be used in the country as a means of payment and as an investment asset.

The bill, which widely extends to a sector known as "virtual assets," now just need the President's signature before it becomes law. It does not make bitcoin or any cryptocurrency a legal tender in the country.

The Central Bank of Brazil (BCB) is anticipated to be in charge when using bitcoin as a form of payment, while the Securities and Exchange Commission (CVM) of the nation would be in charge when using it as a kind of investment asset. The federal tax authority (RFB), the BCB, and the CVM all contributed to the development of the overhaul legislation.

The regulation of service providers, such as exchanges, who must adhere to specified criteria in order to operate in Brazil, is one of the additional provisions. The bill seeks to regulate the establishment and operation of Bitcoin service providers in Brazil, defining such entities as those who provide cryptocurrency trading, transfer, custody, administration, or sale on behalf of a third party. Providers of cryptocurrency services will only be permitted to operate in the nation with the official approval of the federal government.

ABOUT GAMEFI.ORG

GameFi.org is a one-stop destination for web3 gaming. We aim to build digital communities and manage virtual economies for mainstream adoption. GameFi.org offers a suite of solutions covering the entire games and gamified projects' lifecycle, following a vision of one digital platform, and one virtual identity requiring zero blockchain knowledge. Visit https://gamefi.org/ for more information.