The Brazilian Congress is trying to approve a cryptocurrency legal framework before the end of Q2. According to reports from local media, The proponents of the different law projects presented in the Senate and the Congress have stated they will seek the unification of the projects due to their similarity. This new unified project presents incentives for green mining and the inclusion of crypto-related fraud as a crime.
Brazilian Congress Moves Gears to Approve Crypto Laws
The Brazilian Congress has the disposition of approving a definitive law to regulate cryptocurrency before Q2 ends. According to local media, the rapporteurs of two different proposals seeking to regulate crypto interactions in the country will combine these two documents to present a unified version of them. Senators Iraja Abreu and Deputy Aureo Ribeiro will prepare this text, which will be on track for approval later this month.
Abreu has already combined three proposals, and he will ask the Senate for these two new proposals (one in the Chamber of Deputies and one in the Senate) to be processed and approved jointly. Abreu stated:
I’m doing everything in contact with the Chamber’s rapporteur, who did a very good job. The Central Bank’s technical team has also been very helpful. The texts are similar and will converge into one.
The senator believes that with a clear and established cryptocurrency legal framework adapted to the recommendations of the Financial Action Task Force (FATF), this sector will be more investor-friendly for those interested in Brazil. He explained:
There is a market demand for a safer business environment and the need for criminal classification to avoid fraud, in addition to adjusting Brazil to international agreements.
Motivation and New Features
One of the biggest motivations behind this law is the sheer amount of fraudulent activity associated with cryptocurrency. According to reports, the cryptocurrency markets move around R$130 billion annually (around $27.6 billion), with R$6.5 billion reals linked to fraudulent activity (around $1.38 billion).
In fact, this project aims to include the definition of cryptocurrency-related fraud in the Brazilian penal code, which will carry penalties that go from four to eight years of prison time depending on the severity of the crime.
The project also gives special importance to mining, including incentives for green mining projects. This means that mining projects that adopt green energy alternatives will enjoy tax benefits. Abreu stated:
Brazil can become the new green mining mecca. That is the objective.