House of Representatives approved the Bill of Law aimed at regulating cryptocurrencies in Brazil, establishing rules and guidelines for the sector.
Authored by Deputy Aureo Ribeiro (Solidariedade/RJ), PL 2303/15 was approved as a substitute for the rapporteur, Deputy Expedito Netto (PSD-RO). Now, the proposal will go to the Federal Senate.
Approval takes place about three months after the PL have been approved by the special committee of the Chamber.
The deputy celebrated the approval on his Twitter account
PL approved! ✅ pic.twitter.com/HH6Z7pLhFD
— Aureo Ribeiro (@AureoRibeiroRJ) December 9, 2021
Regulation and inspection
Previously, the proposal provided that the Central Bank would be responsible for regulating and inspecting exchanges and other cryptocurrency companies.
But, according to the approved version, this will be done by a federal government inspection body, appointed by the Executive Branch.
It will then be up to this body to authorize the creation and operation of exchanges. In addition, he should oversee the operations of platforms that trade cryptocurrencies in Brazil.
Also according to the text, the federal government may require authorization for service providers to operate in the country. This measure gained strength after several scams with cryptocurrencies, especially in the case of the “King of BTC”.
If it passes through the Senator and is sanctioned, the government and companies will have 180 days to adapt to the new rules.
According to the proposal, legal entities that perform services such as exchanging cryptocurrencies for fiat currencies are classified as service providers; exchange between cryptocurrencies; transfer; custody etc.
According to the PL, the companies in question must keep a record of the transactions and pass them on to the inspection and combat agencies against organized crime and money laundering.
Lack of regulation generates fraud
Aureo Ribeiro highlighted that the Internal Revenue Service has recognized more than R$ 127 billion in cryptocurrencies being transacted in Brazil. And the lack of regulation, according to him, led to the possibility of fraud.
The rapporteur of the proposal, the deputy Expedito Netto, said that the project defends the crypto sector. At the same time, it aims to make this market safer, valuing the investment.
As reported by Agência Brasil, rapporteur Expedito Netto explained that, although it was not possible to explicitly mention that the Central Bank will be the regulatory body, it is almost certain that this will be appointed by the Executive Branch.
The text approved by the Chamber also adds a new criminal type of embezzlement to the Penal Code.
More precisely, it grants imprisonment from 4 to 8 years and a fine for anyone who organizes, manages, offers or distributes portfolios or intermediates transactions involving cryptocurrencies in order to obtain an illicit advantage at the expense of others.
Furthermore, the PL includes in the Money Laundering Law crimes involving cryptoactives among those with an aggravation of 1/3 to 2/3 more than the penalty of imprisonment of 3 to 10 years, when practiced repeatedly.