Before leaving office, Brazilian President Jair Bolsonare signs a crypto bill into law.
Jair Bolsonaro, the 38th president of Brazil, whose term will end on December 31st, has signed a bill allowing Brazilians to use crypto to pay for their goods and services.
According to the publication shared on the “Official Diary of the Union” dubbed "Dispatches of the President of the Republic," bill 14,478 was signed on December 21st.
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It is worth noting that before appearing on the President's desk, the bill was approved by multiple institutions.
In April, the bill received a green light from the upper house of the National Congress, The Federal Senate of Brazil. Afterwards, it went into the hands of Brazil's Chamber of Deputies, which approved it on November 29th, and sent it to be signed by the President.
The new law allows Brazilians to use various cryptocurrencies, such as Bitcoin (BTC) or Ethereum (ETH), as a legal payment method. However, it is worth noting that neither Bitcoin nor other digital currencies are recognised as legal tenders.
On top of that, the new law overviews penalties for participating in or launching crypto-related fraud schemes. Malicious actors involved in crypto fraud can face between four to six years in jail and a fine.
To operate in the country, crypto exchanges and trading firms will have to obtain a virtual asset service provider (VASP) license from Brazilian authorities.
The Brazilian Securities and Exchange Commission, also known as Comissão de Valores Mobiliários (CVM), will supervise digital assets, which are considered securities. On the other hand, digital assets that don't fall into this category will be controlled by another undetermined entity.
The bill stated that crypto firms already operating in Brazil have 180 days to adapt to the new rules. Therefore, it is most likely that the crypto bill will come into full effect in June 2023.