Brazilian Government To Clarify Bitcoin Law With New Decree
18 Février 2023 - 4:54AM
NEWSBTC
The Brazilian government is set to issue a decree that modifies
some of the rules established in the Bitcoin Law approved in
November 2022 by former president Jair Bolsonaro. This move comes
in line with recent developments taken by President Lula da Silva
in recent weeks. Brazil Faces New Crypto Regulations
With barely a month in office, the new president has stamped his
authority by signing a series of decrees and measures to change
what the previous government established. Lula’s team is now
working on new proposals to regulate the cryptocurrency sector and
clarify existing crypto laws. According to local reports, the
government has formed an extensive group to oversee the regulation,
including the executive secretary of the Ministry of Finance,
Gabriel Galípolo, and the secretary of economic reforms, Marcos
Pinto. In addition, the regulation has the technical support of the
Central Bank (BC) and the Brazilian Securities and Exchange
Commission (CVM). The initial expectation was that the decree would
be sent at the beginning of February to the Presidency of the
Republic known as Casa Civil, but this was postponed. Related
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Meanwhile, the cryptocurrency industry is waiting for the decree,
probably with more attention on the institution that will be the
primary regulator of the Bitcoin ecosystem. Previously, it had been
mentioned that the Central Bank would be the entity in charge of
regulating the cryptocurrency sector. However, Lula’s recent
attacks against the financial institution have cast some
doubts. Last month, the president of Brazil questioned
whether the autonomy of the Central Bank served the national
interest. Although he later seemed to retract it, he indicated that
he would review its independence to make decisions from 2021. What
Changes Are Contemplated For The Brazilian Bitcoin Law? The
core focus of the new regulations would be drafting new rules
regarding different facets of the crypto industry. There are
expectations that the new decree would clarify the laws regulating
the crypto industry in Brazil. A proposed law that has widely
been debated is the requirements of crypto exchanges and brokers to
segregate their assets. This measure has been the subject of
discussions by lawmakers and proposes that crypto asset brokers
separate their funds from clients’ deposits. Proponents of the
regulation believe that it would prevent users’ cryptocurrencies
from being mixed into the operation of exchanges and other service
providers. The collapse of FTX is cited as a significant factor
where users could not withdraw their funds due to harmful trading
activities from the exchange. Related Reading: South Korea Plans A
Key Arrest Relating To Terra (LUNA) Crisis The proposal was
initially approved when the bill passed the Senate but was later
annulled because it divided the legislators of the Chamber of
Deputies. However, it is expected to be a vital component of the
proposed Bitcoin decree. Brazil is regarded as one of the nations
with widespread crypto use. Last November, it took a significant
step when it recognized Bitcoin as a medium of payment and even an
investment asset. Bitcoin Price The leading
cryptocurrency is currently trading at around $24,500 as of the
time of writing. -Featured image from Shutterstock and Charts
from TradingView.com
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