Brazil approves cryptocurrency transactions, “opening the way for more Bitcoin use”

President Jair Bolsonaro has approved a measure that legalizes and controls Bitcoin (BTC) and other cryptocurrencies as a form of payment in Brazil.

According to the official journal of the federal government, Bolsonaro signed a measure into law that created the formal and comprehensive framework for the trade and usage of “virtual currencies” in Brazil. The measure, previously passed by Congres was signed and published on Wednesday and Thursday, respectively.

It specified that “For purposes of this law, a digital representation of value that may be sold or transferred electronically and utilized for payments or investments is regarded a virtual asset.”

Therefore, this does not cover national and international currencies, electronic currencies, instruments that deliver specific advantages and services (such as loyalty program points and incentives), and stocks and financial assets.

The document continued, “Service providers for virtual assets may only operate in the nation with previous authorization from a federal public administration agency or institution.”

Residents of Brazil will not be allowed to utilize cryptocurrencies as legal tender.

Regarding illicit activities utilizing crypto, the measure said that offenders would face fines and up to eight years in jail.

“The punishment will be enhanced from one-third to two-thirds if the offences listed in this law are regularly committed by a criminal organization or via the use of virtual assets,” it said.

The Brazilian Central Bank (BCB) and the Brazilian Securities and Exchange Commission (CVM) are tasked with working together to monitor the market, each with their own area of expertise: the BCB would keep a check on cryptocurrencies used for payments, while the CVM would monitor cryptocurrencies used as an investment asset. However, the government agencies that would serve as agencies have not yet been chosen.

Also Read: Crypto-Skeptic Peter Schiff Agrees That Bitcoin’s Rise Contributed To A Decline In Gold’s Popularity

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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