Earlier this month several organizations and companies sent a letter to the Chamber requesting speedy approval of the PL, which has been blocked since June.
This Tuesday (29) the Chamber of Deputies approved the basic text of the bill 4401/21 which regulates the cryptocurrencies in Brazil. The article, written by deputy Aureo Ribeiro (Solidariedade-RJ), will be sent for presidential approval.
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The project had already been approved in April by the Senate, but had been stuck in the House since June. This month, several entities and companies have sent a letter to the House asking for speedy approval of the text, “aiming at the development of the market in the country and providing greater safety and reliability to Brazilian consumers”.
What does the cryptocurrency framework say?
The PL stipulates that cryptocurrencies, or virtual assets of value, can be traded or transferred electronically, as well as used to make payments or for investment purposes. According to Ribeiro, the author of the proposal, the measure aims to combat the practice of crimes involving cryptocurrencies, such as money laundering, and create mechanisms to protect investors.
Companies will have 180 days to adapt to the new rules, only then will the law go into effect. The document also defines the creation of a license for “virtual service provider” — which consists of legal entities that perform the following services:
- Exchange, for others, of virtual currencies with national or foreign currency;
- Exchange between one or more virtual resources;
- Transfers from them;
- Custody or administration, even if of instruments of control;
- Participation in financial services and provision of services related to the offer by an issuer or the sale of virtual goods.
The project also provides for the inclusion in the penal code of a new type of crime of embezzlement. The penalty is four to eight years’ imprisonment and a fine for anyone who «organises, manages, offers or distributes portfolios or media operations on virtual goods, securities or any financial asset for the purpose of obtaining an illicit advantage to the detriment of others, inducing or withholding someone in error, by artifice, cunning or other fraudulent means”.
As for market regulatory bodies, the draft defines that crypto assets that are considered securities will be under the responsibility of the Securities Commission (CVM), while assets that do not fall into the category will be regulated by another body appointed by the Executive Branch.
The FTX crisis highlighted regulation
Rejected by the deputies, one of the most controversial points of the text, which concerns the segregation of assets. The mechanism envisaged the separation of the assets of the investors and of the intermediaries themselves, acting as a guarantee that the users’ values ​​would not be used. However, foreign exchanges were against adding the item to the project, including Binance.
In recent weeks the Scandal FTX rekindled the discussion of regulation. The company was found to have been using client funds to carry out its own operations and those of its subsidiaries, such as Alameda Research. The company has been unable to honor its business, and with the bankruptcy filing, it has become more difficult for users to recoup their investments.
The specialists who defend the object say that, in the event of bankruptcy of the brokerage, customers would be protected and the repayment of the sums would be facilitated. Those against the measure argue that the point was not clear in the original text and that segregation could prevent the functioning of common products in the crypto environment, such as passive income (staking out🇧🇷
Source: Metropolis
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Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
