As published in the Government Gazette this Thursday (22), it is clear that Jair Bolsonaro did not oppose the cryptocurrency law and approved the project, without vetoing the ideas of the National Congress.
The deadline for granting the sanction was until last Wednesday (21), when the document was effectively published.
Thus, Law No. 14,478 of 2022 finally presents the new rules for the sector, which has six months to adapt to the new reality.
The main impact is on cryptocurrency brokerages, which are now overseen by the Central Bank of Brazil.
Understand the key points of cryptocurrency law in Brazil
Unlike El Salvador’s bitcoin law, Brazilian law does not regulate bitcoin’s use as an official currency.
This is because the intent is to regulate the market and prevent fraud against investors, be it brokerage houses or other platforms that offer brokerage services.
For example, the caput of law 14.478 makes it clear that there will now be guidelines for service providers.
“Provides guidelines to be followed in the provision of virtual asset services and in the regulation of virtual asset service providers.”
In addition, the new rules create a legal basis for punishing crimes involving cryptocurrencies. Thus, when financial pyramids appear on the market, their leaders can be punished as provided for in the Brazilian penal code.
“Amends Decree-Law No. 2,848 of December 7, 1940 (Penal Code) to provide for fraud involving the use of virtual assets, securities or financial assets; and amends Law No. 7,492 of June 16, 1986, which prohibits crimes against the national financial system be defined, and Law No. 9.613 of March 3, 1998, which provides for money laundering, to include virtual asset service providers in the list of provisions.”
That is, crimes involving cryptocurrencies are now punishable by 4 to 8 years, and in some cases can be as high as 2/3.
Approval without veto
Part of the National Congress expected Jair Bolsonaro to veto the lone paragraph of Article 1 of the law, which says it will not change the powers of the Securities and Exchange Commission (CVM).
This is because the autarchy has taken part in regulatory debates and hopes to be a part of creating rules for cryptocurrencies. Tokens in particular continue to be inspected by the CVM, which believes that many of them are securities.
In any case, for Brazilian companies, it is time to study the new rule and prepare for adaptation, since “this Act shall enter into force 180 (one hundred and eighty) days after its official publication🇧🇷
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.
