Brazilian Parliament Postpones Vote on Bill to Regulate Crypto Assets

The Brazilian Chamber of Deputies has moved the first reading of the digital currency bill from this week to October, a date immediately following the presidential election.

For the first time, a bill to regulate cryptocurrencies in Brazil was introduced in February and unanimously approved by the Brazilian Senate Committee on Economic Affairs. According to local media, the adoption of the bill was delayed due to the fact that legislators did not reach a consensus on the final version.

The first article of the document implied that cryptocurrency exchanges should keep their funds separate from user assets. Under the second article, before applying for a license to allow exchanges to operate in Brazil, marketplaces are required to obtain an Employer Identification Number (EIN) for tax purposes.

However, these provisions were removed from the original version of the bill by Congressman Expedito Netto, who is responsible for introducing the bill to the lower house of the Brazilian Congress. The provisions have caused controversy among representatives of cryptocurrency platforms. Many local exchanges agreed with the Senate’s original text, which included articles. And foreign exchanges such as Binance and Bitso welcomed the changes proposed by Expedito Netto. Therefore, it was decided to resume discussions and consultations after summing up the results of the presidential elections in October.

If the bill is passed, the executive authorities will oversee companies working with digital assets. The law also provides for tough penalties for crypto-currency fraud: heavy fines and imprisonment of up to 16 years.

Due to the increase in cryptocurrency crimes in Brazil, the local prosecutor’s office has created a separate unit to investigate them. Prosecutors also expressed their readiness to train those who wish to use crypto assets safely.