President Jair Bolsonaro approved law 14,478, which regulates operations related to cryptocurrencies and virtual asset service providers (VASPs) in Brazil. The document, approved on the last day of the period granted, will begin to be applied 180 days after its approval. This will give all parties a period to adjust to compliance.
Cryptocurrency law finally sanctioned in Brazil
Brazil finally passed its cryptocurrency law at the last moment. After having completed almost the entire period of action, President Jair Bolsonaro promulgated bill 14,478 on December 21, when published in the Official Gazette of the Union, official publication of the country.
With Bolsonaro's sanction, stock exchanges and other organizations subject to the law will have 180 days to prepare to comply with the new directives. However, if Bolsonaro had not signed the bill, the bill would have returned to Congress, with a chance to be passed by the Senate and Chamber of Deputies without presidential support.
This would have been another way to pass the legislation before President-elect Luis Inรกcio Lula Da Silva takes office in January.
Reactions on the approval
Reactions to the passage of the law have been mostly positive, with industry insiders considering this as the first step in regulating the state of cryptocurrency and cryptocurrency trading in Brazil. However, due to differing views on the issue, the project had to be approved leaving out several controversial elements, such as segregation of funds and tax rebates for green mining operations.
This has caused some to view the law as a stepping stone, as there will need to be subsequent laws to complement the foundation provided by current cryptocurrency law. On November 29, Isac Costa, a partner at the local law firm Warde Advogados, fixed:
It may take up to two years for the law to have any practical effect, which leads me to think that its approval is a merely symbolic act.
Other global companies have a different view on the issue, seeing this as an important step to increase the use of bitcoin and other cryptocurrencies as payment methods in the country. On this, Alex Adelman, CEO of Lolli, a bitcoin rewards app, stated:
Brazil's decision to regulate bitcoin as a payment mechanism sets the stage for further bitcoin adoption in the country and in Latin America in general.
What do you think about the enactment of the cryptocurrency law in Brazil? Tell us in the comment section below.
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