This Tuesday, the Brazilian Senate approved a new bill that will serve as a regulatory framework for the country's cryptocurrency industry. The aim of the new law is to bring greater security to investors and set rules. However, the law on the regulatory framework for traders and cryptocurrency investors in the country has still not won.
Before the law enters into force, it must pass the approval of the Chamber of Deputies and the signature of President Jair Bolsonaro. The Cryptocurrency Control Act defines that cryptocurrencies are digital representations of value that can be traded or transferred electronically, including making payments and investments. Under the proposal, digital asset service providers will be operating in Brazil only with the first authorization from a federal government authority. The proposal also defines that institutions authorized by central bank's activities will be the power exclusively to provide cryptocurrency services or accumulate them with other activities.
The Brazilian government will still decide whether further amendments should be added to the new draft law on the regulation of the cryptocurrency sector. Lawmakers in Brazil also determine which state organizations will serve as the supreme regulator overseeing cryptocurrency providers.