The recently approved Brazilian cryptocurrency law is likely to be revisited by the government of Luis Inacio “Lula” Da Silva. According to the former rapporteur of the legislation, Expedito Netto, the new government is likely to make changes to the bill to address a few outstanding matters.
Former Rapporteur Suggests Cryptocurrency Law is Not Definitive
Recently passed Brazilian cryptocurrency law may be subject to review by the newly elected Congress, according to statements made by Expeditto Netto, the country’s former rapporteur on the matter. The proposed amendments to the law are not final, as it may be reintroduced for further discussion to address some remaining issues.
Netto, who was not reelected in the November general election, claimed that there are still important issues that need to be addressed and included in the law. Among them was the question of whether virtual asset service providers should be required to keep user funds separate from their own. Analysts have suggested that certain capital restrictions imposed on some companies in the sector could have an effect on the services they are able to offer.
The pressure is on for international cryptocurrency exchanges to implement restrictions following the bankruptcy filing of FTX, the world’s largest crypto exchange.
Other controversial issues, such as tax breaks for green mining operations, were also not addressed.
Benefits of the Law
Experts believe that changes to the law could make it easier for clients to feel secure when investing in virtual assets. The Central Bank of Brazil was established to oversee and register custody and exchange institutions in the country. The legislation also allows for the National Securities Exchange Commission (CVM) to intervene on portfolio offers made by exchanges and limit those deemed to be illegal.
Another benefit of the law is its direct criminalization of crypto scams and the ensuing penalties.
What do you think about the potential for the government to amend the recently approved Brazilian cryptocurrency law? Please leave a comment below.
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