Brazil is discussing a regulatory proposal that will mark a turning point for the cryptocurrency industry in the Latin American country.
The Brazilian Chamber of Deputies approved, in its first round of consideration, Bill No. 3825 presented by Senator Irajá Abreu, to regulate the industry of cryptocurrencies, and promote Bitcoin mining powered by renewable energy sources.
The bill in question was attached to the regulatory proposal by Congressman Aureo Ribeiro, which was approved by the Senate Economic Affairs Committee last February and which recognizes and regulates the cryptocurrency market in Brazil.
Now Abreu and Ribeiro are working together to create a joint bill that will allow the construction of a legal framework to regulate commercial and financial activities carried out with cryptocurrencies in the country. he pointed which will include the proposals and amendments submitted by the senators during the first round of the plenary session to optimize their regulatory proposal.
The new bill is expected to be voted in plenary session next Tuesday, April 19, and that it be definitively approved in the country during this first semester.
Brazil supports green Bitcoin mining
The bill proposed by Abreu is aimed at accelerating Brazil's leadership as one of the most pro-crypto nations in the world. It could also make the nation one of the largest regulators of cryptocurrencies, as it aims to have the national government directly oversee this growing industry. Brazil could delegate oversight and regulation of the crypto industry to the Central Bank, the Securities and Exchange Commission, or create a new entity for that purpose.
This bill includes rules to ensure the creation of a robust cryptocurrency market, as well as ensuring the protection of investors and consumers and promoting sustainable bitcoin mining. If approved, the bill will establish a zero tax rate for Bitcoin miners who sustain their activity on the network using clean and renewable energy sources. It will also eliminate taxes on the import of ASIC miners.
In addition to all this, the Brazilian Senate has noted that the crypto regulation presented by Abreu includes a registry of politicians and public servants in the country, which will help guarantee and maintain the transparency of the crypto market to contribute to the fight against money laundering and financial crimes.
Brazil, an emerging market for cryptocurrencies
Brazil is unifying regulatory proposals on Bitcoin and cryptocurrencies with the aim of creating the necessary rules to stimulate the responsible development of a national cryptoasset market.
The country was the first in Latin America to approve the creation of exchange-traded funds (ETFs) for Bitcoin and Ethereum, the main cryptocurrencies on the market. Brazilian regulators also approved the first ETF focused on decentralized finance (DeFi) in the region.
Recently, the city of Rio de Janeiro, one of the largest and most populated in Brazil, reported which, starting in 2023, will accept cryptocurrencies such as Bitcoin in tax payments. Rio Mayor Eduardo Paes said that this is a way to recognize and support the potential of the crypto market and digital assets. The Rio de Janeiro city council also raised the idea of creating a collection NFT and encourage local artists to enter the crypto art movement, with the aim of incentivizing culture and creating a new source of municipal income.
Likewise, in addition to regulating and promoting investment in cryptocurrencies, Brazil will also create its own digital currency (CBDC). The Central Bank of Brazil confirmed that in 2022 it will begin pilot testing for its digital currency, the Brazilian real.
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