Brazil Permits Investment Funds to Make Crypto Investments
The Securities and Exchange Commission (CVM) of Brazil permitted investment funds to incorporate crypto among the rest of their holdings. Jair Bolsonaro, the president of the country, has approved a bill targeting crypto regulation. This will guarantee a regulated agenda under which the crypto assets will operate. It currently finalizes the regulatory perspective which the Brazilian authorities have been discussing for up to a whole year.
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Securities and Exchange Commission of Brazil Approves Crypto Investment as a Law
The bill was authorized by Brazil’s Senate and Chamber of Deputies. On the 29th of the previous month, this legislative entity delivered the bill to the country’s president. This bill will allow payments in Bitcoin along with the rest of the developments to follow this move. Formerly, as per the text written in the bills, the citizens of Brazil were not permitted to utilize Bitcoin and other crypto assets as legal tender, as was done by El Salvador.
However, the introduced bill will let the crypto assets be formally categorized as a legitimate method of payment in Brazil. The latest law pursues to development of a criminal agenda to prevent criminal activities related to digital assets. The punishment for these malicious activities will specify a jail time of 4 to 6 years in addition to a fine. It additionally attempts to establish a licensing project for the providers of crypto services, taking into account the trading mediators and exchange platforms.
Brazil’s Congress and the president have authorized the respective bill without recommending any further modifications to it. This classifies the country to have formally adopted the chief crypto as a payment as well as an investment medium. According to the bill, the definition of crypto is that of a digital manifestation of value having the ability to be transacted electronically along with being utilized for investment and payments.
Brazil Doesn’t Make Bitcoin Its Legal Tender
The Central Bank of Brazil (BCB) will expectedly administer the use of Bitcoin for payments while the Securities and Exchange Commission (CVM) will keep an eye on the investment activities done with the crypto assets. Almost 180 days following the approval of the law, it will be implemented in the country. Nevertheless, the government has not made Bitcoin a legal tender.
