Brazil's cryptocurrency regulation set to become law at midnight
Quick Take
- The country has been at the forefront of digital payments.
Cryptocurrency regulation in Brazil is poised to become law at midnight local time.
The bill, which was approved by the Chamber of Deputies two weeks ago, aims to regulate providers of virtual assets. If outgoing President Jair Bolsonaro doesn’t veto it by the end of the day, it will automatically become law.
Brazil has been at the forefront of digital payment innovations, creating PIX, a simple, almost free instant payment system that has revolutionized the industry. The central bank also has a digital currency that it is currently testing and plans to issue in 2024.
A regulator must also be appointed for the sector, and the industry expects it to be the Brazilian Central Bank, according to Blocknews. Whichever body does end up regulating providers of virtual assets will have to decide on the question of keeping client funds separated from company funds, a major concern following the lack of segregation at FTX.
The proposed law also allows public institutions to hold crypto.
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