• Brazil is the first South American country that adopts crypto laws.
• BRL 215 Billion was the value of cryptocurrency in 2021.
• In November 2021 the Central bank began a project to create digital currencies. It partnered with nine banks.

Brazil is now a major player in the Bitcoin market. Senator Irajá Abreu announced that Brazil’s bill has been approved to regulate the cryptocurrency market in the country.

Criptomoedas: marco regulatório busca segurança jurídica para investidores.

Em 2021, o mercado de criptomoedas movimentou R$ 215 bilhões. É um mercado gigante, mas que também tem problemas.

— Irajá (@irajasenador) April 26, 2022

Brazil is the first country in South America to adopt a cryptocurrency law. In a survey done by Gemini, Brazil’s digital asset user numbers surge to 41%, compared to America’s 20%.

In an interview with Senate TV, the senator said:

BRL 215 million was the value of cryptocurrency in 2021. It’s a giant market that seeks legal securities for its investors.

The bill was first introduced in 2015 and has been discussed by the Chamber of Deputies. After passing several rounds, including the Senate’s Economics Committee, Senator Irajá said that the National Congress will pass the bill by the end of 2022. The bill must be signed by both the Chamber of Deputies as well President Jair Bolsonaro.

The passed law will empower the Brazilian president to establish a federal entity to carry out all of the country’s legal cryptocurrency laws.

If no new regulator gets appointed, the region’s Securities and Exchange Commission or the Central Bank of Brazil will most likely assume responsibilities. Furthermore, crypto miners would not have to pay any tax on the importation of the Australian Securities & Investments Commission (ASIC) mining equipment.

It would give the government sufficient power to regulate cryptocurrency so that it is not used in illegal or unauthorised activities.

Anyone who uses cryptocurrency for illegal purposes will be punished with a minimum of four years to eight year imprisonment. Additionally, the bill provides specific exclusions and incentives to encourage miners from moving to the country.

Furthermore, Brazil’s Central Bank President, Roberto Campos Neto, announced the establishment of a pilot program to develop and execute a sovereign digital currency in the country.

He stated that the Central Bank Digital Currency or CBDC will be available by the end this year. The CBDC will only have one quantity of currency created and will supply a set amount, much like Bitcoin.

The CBDC pilot project represents the culmination multiple collaborations among the Brazilian Central Bank, nine other partner banks, and Brazil will now join the growing number of governments that favor cryptocurrency adoption.

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