Brazil has officially defined the rules and laws governing the virtual digital asset sector. Jair Bolsonaro, President of Brazil, has signed the previously proposed crypto bill into law. The Brazilian Parliament approved the draft crypto rules last November. Crypto operators operating in Latin American countries have 180 days to ensure compliance with these new laws.
Brazil will likely get a new internal committee that monitors all cryptocurrency activity processed in the country, and upcoming cryptocurrency companies that aim to set up shop in Brazil will now have to obtain the relevant “Virtual Service Provider” license to legally operate there.
According to a report by CryptoPotato, under the laws, once crypto companies get their approvals, they will be able to set up physical offices in Brazilian cities.
Changpeng Zhao, CEO of cryptocurrency exchange Binance, described Brazil’s move as a milestone in the global crypto sector.
The laws are meant to protect investors from exposure to financial fraud because the crypto sector is riddled with scammers and, in general, crypto transactions are untraceable.
New laws are instructing law enforcement units in Brazil to create a new “fraud offense” category that will deal with cryptocurrency financial fraud.
Nubank in May, Brazil’s largest digital bank by market capitalization, began offering Bitcoin and Ether to be bought or sold on its platform. Nubank’s decision was prompted by the growing number of cryptocurrency investors there.
Canada, India, the United Kingdom, and the United States are also working on their own cryptocurrency rules that may see the light of day next year.