Deputy promises libertarian law for bitcoin and other cryptocurrencies in Brazil | Finances

Brazil must finally move forward in the regulation of cryptocurrencies. Federal Deputy Aureo Ribeiro (Solidariedade-RJ), author of bills 2303/2015 and 2060/2019 that seek libertarian rules for digital currencies in the country, said in an interview to EXAM that there is an expectation of approval of the PL still in 2021.

Deputy Aureo Ribeiro (Image: Reproduction / Chamber of Deputies)

“We want Brazil to be at the forefront, allocating reserves in bitcoin,” said the deputy on Friday (26). Since the COVID-19 pandemic worsened in March 2020, discussions on the bills have been halted in the Chamber of Deputies, but they should be resumed soon, with the possibility that the latest PL will be put to the vote yet. in the first semester.

“The forecast is that next week the Permanent Commissions of the House will be installed and, with that, we also expect the return of the debate of the Special Commission of the project”, said Aureo, adding that the chances of approval are very good.

What would the regulation of cryptography look like?

According to the deputy, the focus will be on PL 2060/2019, which is more current and complete. Thus, 2303/2015 will be left out. “When we created the first project, nobody knew about the subject. Today that has changed, it is something that has matured among deputies and senators ”, he said. In addition, Aureo believes that the Chamber is more aware of the issue and sensitized to take up the issue again.

Bill 2060/2019 regulates cryptocurrencies and derivatives in Brazil under the idea of ​​creating an environment in which this technology serves to foster the national financial system and the needs of the economy and the population. The text increases the penalties for crimes involving “financial pyramids” and other fraudulent scams and uses of cryptography.

The proposal will amend the current Securities Market Law to insert cryptocurrencies and derivatives as a legally recognized category of assets. In an interview with the channel Digital Money Dash, the deputy said: “We have a libertarian regulation where the markets adjust. I am sure that we will pass this law in 2021 and sanctioning this project would be a great achievement for the Bolsonaro administration and I am sure that this is also a government agenda ”.

Financial institutions as intermediaries

The text considers legal entities and service providers (such as exchanges, exchanges and payment platforms) as intermediaries for trading, post-trading and custody of crypto assets. Thus, the issuance of digital currencies, for example, would be legally recognized and allowed for these bodies that are duly registered and active in Brazilian territory.

The Securities and Exchange Commission (CVM) would no longer need to register activities regulated with cryptography in order to establish an environment for testing new technologies and innovations. However, obviously always analyzing the purposes of the activities.

Punishment for cryptocurrency crimes

The Penal Code will also be changed. A new type of crime will be created to cover the issue of cryptography without legal permission. The penalty varies from 1 to 6 months of detention or fine, according to the analysis of the situation and the judge’s decision.

Another modification is the Law on Crimes Against the Popular Economy. The penalty for fraudulent financial pyramid schemes and derivatives is 1 to 5 years imprisonment and a fine. Today, the penalty for this type of crime is 6 months to 2 years.

“Brazil needs transparency and agility to cut red tape, and blockchain technology can undoubtedly help with bureaucratic processes. We want to be part of the digital impact, use technology to our advantage. We want Brazil to be able to invest part of its reserves in bitcoin, as other countries are already talking. In the same way that we buy dollar, euro, we should be able to buy bitcoin, which would be very important for our balance ”, said the deputy to the EXAM.

With information: EXAME, Cointelegraph

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