The Brazilian Chamber of Deputies last week approved bill 4401/21, which establishes the first laws for cryptocurrencies in Brazil, and now awaits presidential sanction.
The bill establishes a new crime of fraud involving virtual assets, with a penalty of two to six years and a fine. It also stipulates the creation of a “virtual service provider” license, which must be applied for by companies, including exchanges and other companies in the crypto industry.
The text stipulates that crypto assets considered securities will be regulated by the Securities Commission, while other digital assets that do not fit into this category will be under the responsibility of another body to be appointed by the Executive Branch. It is expected that the Central Bank will be chosen.
Before being approved in the Chamber of Deputies, the project went through a long journey in the Legislature, being postponed and changed several times, which took about 7 years until it finally succeeded.
The new legislation is very important for the industry and is concerned with bringing legal certainty to the sector so that it operates with more confidence in the Brazilian market.