The Brazilian Parliament wants to enforce a legislative framework for cryptocurrencies by the end of the second quarter. Because of their similarities, supporters of the legislative proposals currently being debated in Congress and the Senate have declared that they want to work toward integrating the recommendations. This new integrated initiative offers incentives for environmentally friendly mining and the addition of cryptocurrency-related theft as a criminal offence.
The Brazilian Congress Is Shifting Gears To Pass Crypto-related Legislation
The Brazilian Senate has the option of passing final legislation to regulate cryptocurrencies before the second quarter of the year comes to a close. Senators Aureo Ribeiro and Iraja Abreu will work together to draught this document, which is expected to be approved this month. It has been reported in the local papers that the supporters of two proposals to govern crypto usage in the country would merge their two documents in order to form a consolidated version.
Senator Abreu has joined three opinions and has asked the Senate that both proposals (from the Senate and the Deputy Chamber) be reviewed and accepted together. Abreu made the following statement:
“Throughout the process, I’m in constant communication with the parliamentary investigator, who performed well. The Central Bank’s technical officer has been very helpful too. The contents are related and will eventually merge into one document.”
The senator argues that by establishing a clear and well-established crypto legislative structure aligned with the Financial Action Task Force (FATF), the crypto industry would become more crypto-friendly for investors looking at the country. He went on to explain that:
“There is an increasing market need for a secure corporate setting and the need to categorize crime to prevent fraud, complementing Brazil’s alignment with international treaties.
Reason For The Legislation
It is believed that among the primary motives for passing this legislation was the significant incidence of fraudulent practices connected to crypto. According to sources, the crypto markets move more than R$130 billion (approximately $27.7 billion) each year, with over R$6.5 billion reals (approximately $1.39 billion) associated with fraudulent activities.
In reality, the goal of this program is to infuse a section about crypto-related crime in the country’s criminal code that will result in judgement of 4 to 8 years jail time based on the seriousness of the crime.
Mining is also given particular attention with incentives for environmentally friendly mining activities included. This means that mining operations that use environmentally friendly energy sources will be allowed to enjoy tax breaks.