PL that provides for the regulation of cryptocurrencies in Brazil returns to vote in the Chamber of Deputies
Bill that establishes rules for the cryptocurrency market in Brazil returns to the agenda of the Plenary of the Chamber of Deputies and may soon become law
Bill 2303/15 (which is now being processed under the number PL 4401/2021), authored by Federal Deputy Aureo Ribeiro (SD-RJ) and which establishes norms and laws for the cryptocurrency market in Brazil returned to the agenda of the Plenary of the Chamber of Deputies this Monday, 20.
Since its initial approval in the Chamber and after the amendments by the Senate, the PL, upon returning to the Chamber, underwent new changes to adapt points that the Deputies and institutions linked to the Federal Government considered necessary, according to the PL’s rapporteur, Deputy Expedito Neto (PSD-RO).
Also according to Neto, the Central Bank of Brazil should be the regulatory institution of the crypto-assets market in Brazil and it will also be up to the BC to define and adapt the rules of the National Financial System to crypto-asset companies.
However, even with the PL still awaiting approval, the BC has already been designing rules for the market and seeking a way to ‘frame’ crypto companies.
Within its regulatory scope, which operates in Payment Institutions, Fintechs and Banks, the BC required banks, such as Capitual, which provide services to cryptocurrency exchanges, mainly international, to carry out a work of individualization of payment accounts with the in order to identify the clients of international exchanges.
The measure affected companies such as Binance, Huobi and KuCoin, resulting in problems with withdrawals in reais on Binance and the breach of the exchange’s contract with Capitual.
In the case of the PL, if it is approved this second in the House Plenary, the project goes to President Jair Bolsonaro for sanction and then becomes law with a period of adaptation for companies in the sector to adapt to the new rules.
Cryptocurrency regulation in Brazil
For Roberto Cardassi, CEO of BlueBenx, the long-term expectation is that this regulatory process will even guarantee the entry of new investors into this market. For him, this will boost the local economy by generating income and employment for Brazilians and can also increase the liquidity of products based on crypto assets.
“Certainly, the regulation of the crypto market in Brazil is a big step for the country to be among the largest global markets and still become a highlight among them”, he highlights.
Thiago Barbosa Wanderley, master in tax law and partner in the tax area of Ogawa, Lazzerotti e Baraldi Advogados, believes that the major exchanges in the market should buy national companies after regulation.
“There is a prospect that PL 4401/2021 will be approved, allowing the government to move forward with regard to the regulation of crypto assets. National exchanges have mostly positioned themselves in favor of regulation, on the grounds that it would provide greater security and credibility to the markets. As companies not established in Brazil will only be able to start their activities after approval by the regulatory body, it is possible that we will see an increase in the incorporation of small exchanges by large international players,” he said.
The President of the Blockchain and Virtual Assets Commission of the São Paulo OAB, lawyer Caio Sanas, points out that until the publication of the law, substantial changes may occur for national and international providers of virtual assets services.
“We must pay attention to each step as the time to adapt to the new rules remains at 6 months. Larger service providers tend to find it easier to adapt than small and medium-sized companies. That should be considered as well.”