President Jair Bolsonaro has until December 21 to approve (or veto) Brazil’s cryptocurrency law.
Bill No. 4.401/2021 was approved on November 29, 2022 with a vote in the plenary session of the Chamber of Deputies.
Since the federal senate has been analyzing the project for the past few months, there is no need to reassess the PL, which was later approved by the president.
The bill is the first to be approved in the country by the National Congress, following a series of scandals in Brazil and in the world related to cryptocurrencies.
Jair Bolsonaro has two weeks to approve the cryptocurrency bill
After approval by parliamentarians, Mayor Arthur Lira (PP-AL) sent the final text of PL 4.401/2021 for presidential approval.
Since the filing was made on December 1 and the president has 15 working days to approve the rules, Bolsonaro’s deadline is December 21.
It draws attention to this may be the last law passed by Jair Bolsonaro in his government, which ends in 2022, as he was not re-elected.
Part of the market understands that a veto is needed for the project, which risks leaving the CVM outside market regulation. For example, Senator Soraya Thronicke (União-MS) requested contact with the president to veto a controversial point.
In any case, if Bolsonaro approves the project, the law will enter into force after six months, the stipulated period during which the rules come into effect. The Brazilian project, called Marco das Criptomoedas, requires brokers working in Brazil to register CNPJ in the country and act responsibly with clients.
The Central Bank of Brazil has already stated that it will carry out prudential regulation with the platforms operating in the country. That is, it will follow the processes as it is done in banks.
Cryptocurrency law is a financial breakthrough for Brazil, says ABRANET president
According to Eduardo Neger, president of ABRANET, the cryptocurrency law approved by the Chamber of Deputies is a financial breakthrough achieved by Brazil.
“The Brazilian Internet Association (Abranet) understands that the passage of Bill (PL) 4401/2021 regulating virtual asset operations in Brazil represents a step forward for the country’s financial sector. Abranet supports this regulation as the definition of concepts and processes will provide legal certainty not only to the financial sector, but to the entire Brazilian population.”
According to the association, the high volume of cryptocurrency trading in Brazil is a plausible justification for passing the law.
In addition to the association, several companies reacted positively to the passage of Brazil’s first cryptocurrency law. However, it is possible that more projects will come in for industry discussions in the coming years, one of them Asset segregation of brokers.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
