November 30, 2022

Brazil Legalizes Crypto As A Method Of Payment

Brazilian lawmakers have approved a regulatory framework legalizing the trading and the use of cryptocurrencies as means of payment in the country.

The bill applies broadly to a sector which it calls virtual assets and now only needs the President Jair Bolsonaro’s signature before it becomes law.

The new rules would apply to legal entities that exchange virtual currencies for local or foreign currencies, exchange virtual assets, conduct transfers or are involved in financial services.

It recognizes bitcoin as legal tender that can be used as a means of crypto payments in the South American nation in world's 6th most populous country.

The proposal comes days after one of the world's largest crypto exchanges collapsed earlier this month.

According to local media, the bill would force all locally active crypto providers to have a physical entity in the country, with fines and even prison sentences for those breaching the new rules.

The bill would give companies a grace period for compliance, the local media reports said.