Senate approves bill on cryptocurrencies that regulates the sector in the country

Senate approves bill on cryptocurrencies that regulates the sector in the country

With approval, the bill will be forwarded to the plenary of the Chamber of Deputies, where it will need to be approved by the majority of the 513 parliamentarians, before proceeding to presidential sanction.

The Brazilian Senate approved this Tuesday, 26, the Bill (PL) 3.825/2019, which regulates cryptocurrency operations in Brazil. The project, by Senator Flavio Arns (Pode-PR) and which had the rapporteurship of Senator Irajá (PSD-TO), aims to combat the practice of crimes with crypto-assets and creates mechanisms to protect investors.

In addition, the PL also encourages the reduction of the environmental impact of mining digital assets and removes cryptos from the scope of the CVM – attribution that should be under the responsibility of the Central Bank – among other measures.

“The passage of the law will be very positive and could mean a great advance for the sector in the country, which could become a global hub for the crypto industry due to greater regulatory clarity. In addition, the definition of the rules of the game and those responsible for the supervision of crypto-asset brokers will bring more security to the investor, which can increase the adherence of Brazilians to cryptocurrencies”, commented André Portilho, head of Digital Assets at BTG Pactual bank. .

To become law, the PL needs to be voted on by the plenary of the Chamber of Deputies and, if approved, will be sent for presidential sanction. If sanctioned by Jair Bolsonaro and there are no proposed amendments, the new law becomes effective 180 days after its publication.

Son of President Jair Bolsonaro, Senator Flávio Bolsonaro has already voted in favor of the new legislation, in a vote held by the Senate’s Committee on Economic Affairs (CAE), in a stage prior to the PL vote in the plenary that took place this Tuesday, which suggests that there will be no presidential veto.

2TM, owner of the digital asset trading platform Mercado Bitcoin and other companies linked to the sector, is also optimistic about the approval of the PL. “The regulation of virtual assets, a category that includes cryptocurrencies, such as bitcoin, and other digital assets, such as tokens, is fundamental and urgent, and we endorse the initiative of the Legislative Branch. Regulation can guarantee a healthy market, with security for entrepreneurs and protection for consumers.

The PL had already been processed for a few years in the house and dates from other texts regulating the digital market such as the Legal Framework for Startups, approved six months ago.

Text includes new type of crime in Penal Code

The text defines the guidelines for the performance of brokers, exchange houses and other providers of services related to the crypto world, and provides mechanisms for the punishment of possible fraud – among the measures, is the inclusion in the Penal Code of a specific crime for irregularities. involving cryptocurrencies.

Initially, the bill imposed a prison sentence of 4 to 8 years and a fine for anyone who “organizes, manages, offers or distributes portfolios or intermediates operations involving virtual assets, securities or any financial assets with the purpose of obtaining an unlawful advantage to the detriment of others, inducing or keeping anyone in error, by artifice, ruse, or any other fraudulent means.” The bill’s rapporteur, however, accepted the request of the Senate president, Rodrigo Pacheco (PSD-MG), for the period of imprisonment for the criminal type created by the law to be reduced to 2 to 6 years, so that the sentence would be longer. close to what is provided for in article 171 of the Penal Code on the crime of embezzlement, which provides for a penalty of 1 to 5 years.

In the new legislation, the classification of companies in the category of cryptocurrency brokers (or “exchanges”, as they are known) will take place through the fulfillment of a series of duties and conditions, such as free competition and free enterprise; to control and maintain the funds contributed by clients in a segregated manner; good governance practices and risk-based approach; information security and protection of personal data; and protection of popular savings.

Companies in the sector will also have to share a greater number of information with government agencies and will have six months to adapt to the new rules. The text of the PL is in line with the recommendations of the Financial Action Group (GAFI), an anti-money laundering body.

The position in favor of the Bill, however, is not unanimous among industry participants in the country. “The law goes a little against what this economy proposes. At the same time, it is the government’s role to try to mitigate fraud, even though it is not a standard for companies in this market. But we believe that the law will be ineffective. It will only control, tax and inspect interactions between digital assets and the traditional economy, but it will not be able to monitor interactions between cryptocurrencies. On the other hand, the law can help at the point where people are deceived, favoring those who do not understand the details of this shared economy”, commented Lucas Buck, from the NFMarket Agency, an agency specializing in NFT project management and development.

After approval in the Senate, there is no date set for the new analysis of the Chamber of Deputies on the subject, but, considering that it will be the second analysis of the subject in the house, where the subject was already discussed and approved in December 2021, it is the process is likely to be relatively quick.

Source: Exam

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