Brazil recognizes Bitcoin as a means of payment and investment

Lawmakers in Brazil have approved a comprehensive regulatory framework for the trading and use of cryptocurrencies in the country, with new regulations recognizing Bitcoin as a payment instrument and an investment asset.

- Advertisement -

The bill only needs the President’s signature to become law.

The relevant bodies

Under the bill, the executive branch will select government agencies to oversee the cryptocurrency market. The Central Bank of Brazil (BCB) will be in charge when Bitcoin is used as a payment, while the country’s Securities and Currency Commission (CVM) will be the overseer when it is used as an investment asset. Both the BCB and CVM, along with the Federal Tax Board (RFB), helped lawmakers create the general inspection legislation.

Live cryptocurrency economy

Brazil is home to a vibrant cryptocurrency economy and has at times seen more of its citizens trading currencies like Bitcoin than investing in the stock market. Now, the country is looking to lay the groundwork for this to translate into more everyday use in financial transactions.

A tax cut for mining was rejected

However, not everything in the text is positive for market development in the country. A major miss from Tuesday’s vote was the rejection of a clause that sought to reduce certain state and federal taxes on Bitcoin mining machine purchases. While the text was quite restrictive, as the benefit would only apply to businesses that use renewable energy, it apparently wasn’t enough to pass.

About the exchanges

Other provisions include the regulation of service providers, such as exchanges, which would have to comply with certain rules to operate in Brazil. The bill seeks to regulate the establishment and operation of Bitcoin service providers in Brazil, defining entities such as those that provide cryptocurrency trading, transfer, custody, management or sale on behalf of a third party. Cryptocurrency service providers will only be able to operate in the country after explicit authorization from the federal government.

Previous Articles:

- Advertisement -

Latest News

Nasdaq Integrates Canton Blockchain for 24/7 Collateral Management

Nasdaq has integrated blockchain technology from the Canton Network into its Calypso platform to...

Pepe Meme Coin Drops 4.7% as Investor Interest Fades Further

Pepe meme coin dropped 4.7% in value over the past 24 hours, trading at...

WhatsApp Rolls Out AI Message Summaries with Advanced Privacy

WhatsApp introduces an AI-driven feature to summarize unread messages for users. The feature, called Message...

Opyl Turns to Bitcoin Treasury as Cash Crisis Deepens

Opyl Limited, an Australian biotech company, bought around 2 Bitcoin as part of a...

Theta Network Launches EdgeCloud Beta, Unveils Hybrid GPU Platform

THETA Network is launching the beta version of EdgeCloud’s hybrid edge-cloud computing platform on...

Must Read

What Are Anonymous Debit Cards And How Do They Work?

You've heard about anonymous debit cards, but what are they really? Anonymous Debit Cards are cards that let you make purchases without revealing your...