Brazil Congress moves to regulate virtual assets
Brazil’s parliament approves new regulatory framework to enhance virtual currencies.
On 29 November 2022, the lower house of Brazil’s parliament approved a bill that seeks to enhance regulatory framework on virtual currencies along with including virtual currencies and air mileage programs in the definition of "payment arrangements" under the supervision of the Central Bank.
The law requires the creation of licenses for Virtual Asset Service providers as well as demanding exchanges to make a clear distinction between company and user funds, in line with recent regulatory developments in virtual assets.
While this makes significant development for crypto within Brazil, the law still needs the signature of the president of Brazil for it to be fully passed.
Brazil Crypto Adoption:
A report published by Chainalysis in September 2022 showed that Brazil ranked 7th in the worldwide cryptocurrency adoption index. Having a regulatory framework on crypto assets in Brazil will protect the public, increase the country’s attractivity for investments and will encourage other Latin American countries to further regulate the market.
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