The newly-elected government of Luis Inacio “Lula” Da Silva may review and alter Brazil’s cryptocurrency law, as per the former rapporteur on the bill, Expedito Netto. It is possible that the new government will amend the law to incorporate certain issues that were not previously addressed.
Brazil’s Former Rapporteur: Cryptocurrency Law Is Not Final
As per remarks made by the former rapporteur on the law, Expedito Netto, the Brazilian government may be planning to review the cryptocurrency law. Netto has stated that the proposed amendments to the law are not yet finalized and he believes the bill needs to be reintroduced for discussion in order to address any issues that remain.
Netto, who was not reelected in the general election, explained that there are still important matters that must be included in the law, such as whether virtual asset service providers should be required to segregate user funds from their own. Analysts have pointed out that limitations on certain companies in the sector could have an effect on the products they can offer.
International pressure has been mounting for the implementation of restrictions on cryptocurrency exchanges, following the bankruptcy of one of the world’s most important cryptocurrency exchanges, FTX, in November.
Other controversial topics, such as tax breaks for green mining operations, were also not covered.
Benefits of the Law
Experts believe that any changes to the law could make it simpler for clients to feel more secure investing in cryptocurrency assets. The Central Bank of Brazil is helping to oversee and register custody institutions and exchanges in the country. In addition, the bill allows the National Securities Exchange Commission (CVM) to intervene in portfolio offerings from these exchanges, limiting those deemed unlawful.
One of the advantages of the law is its direct criminalization of cryptocurrency scams and the penalties that come with it.
Analysts have voiced their dissatisfaction with the way the law was passed. They have said that, while it is a positive start, more regulation is needed to build on what was already included in the law.
What do you make of the possibility that the government may revisit the recently approved law? What is your opinion on cryptocurrency legislation in Brazil? Please leave a comment below.
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