The report presented by Irajá Silvestre Filho does not contain any proposal to modify the content of the bills. The draft laws deal with the obligations of exchanges, the legality of cryptocurrency transactions, and the status of crypto assets as currencies.
Cryptocurrencies like Bitcoin are increasingly relevant in the global economy, which Latin American governments do not overlook. In that sense, Brazil might become one of the most advanced regarding regulations on cryptocurrencies in the short term.
Senator Irajá Silvestre Filho from the Social Democratic Party (PSD) of Brazil recently expressed a favorable view about three bills. He thinks they could solve much of the regulatory gaps slowing the development of the cryptocurrency industry in the country.
The website of the Brazilian Senate describes the report that Irajá Silvestre Filho presented before the Economic Affairs Commission. It indicates that it does not contain any proposal to modify the content of the bills. Besides, it testifies there is enough merit for their approval, requesting the legislators to vote favorably.
When the Economic Affairs Commission of the Brazilian Senate received that document, they listened to the arguments of Irajá. Otto Alencar asked for more time to analyze its content before submitting it to a vote after a public hearing.
Brazil Has Three Bills for the Cryptocurrency Ecosystem
As a fundamental point, 2020 Bill No. 4207 typifies criminal behavior related to cryptocurrencies, like promoting pyramid businesses. It also establishes the obligations that crypto financial service providers must respect.
Concerning 2019 Bill No. 3949, it recognizes the legality of operations with cryptocurrencies as investments regulated by the exchange infrastructure. Besides, it separates the equity of exchanges from that of their customers.
However, not everything is easy for cryptocurrency enthusiasts. The draft Law also establishes a progressive tax on capital gains for investments in cryptocurrencies. That would range between 15% on profits up to five million reais (BRL) and 22% on those above BRL 30 million.
Regarding Bill 3825 of 2019, it gives the Central Bank supervisory and regulatory powers for those entities offering cryptocurrency services like exchanges or wallets. In addition, it subjects the issuance of initial coin offerings (ICOs) to the control of the Securities and Exchange Commission (CVM).
That draft Law also grants crypto assets the status of currencies instead of commodities. That opens the way for exchanges, banks, and FinTech platforms to offer financial services like cryptocurrency loans.
Similarly, it offers a tax exemption on cryptocurrency mining operations using 100% of electrical energy generated through renewable sources.
There has been significant progress in investment in cryptocurrencies and blockchain technology and their adoption. In addition to planning to launch a CBDC in 2022, the country was the first to approve a cryptocurrency ETF in South America.
The abovementioned bills and advances of Brazil regarding adopting and using those assets prove the interest from the government in them. In that way, they join those countries that have made cryptocurrencies a crucial part of their economic systems.
By Alexander Salazar
