The Brazilian Senate Committee on Economic Affairs approved a bill defining the supervisory authorities that will be responsible for regulating the cryptocurrency industry in the country.
The bill, introduced by Senator Flávio Arns, was approved by the Brazilian Senate Committee on Economic Affairs on February 22. Now the bill must pass a vote in the plenary session of the Senate, and if approved by the Brazilian Chamber of Deputies, sent for approval to the country’s president.
The bill introduced by Arns introduces the term “virtual service provider” for cryptocurrency companies. According to the document, these companies will be able to legally operate in the country. At the same time, they will have to notify the Brazilian Financial Control Board of suspicious transactions that could potentially be used for money laundering and terrorist financing.
The senator also proposes to distribute the supervision of the cryptocurrency industry in the country between the Central Bank of Brazil and the country’s Tax Service. Initial token offerings (ICOs) will be overseen by the Brazilian Securities and Exchange Commission.
If the bill is approved, crypto-currency companies will be held criminally liable for violations of provisions of the law that could harm the Brazilian financial system. In addition, the bill until 2029 exempts companies that neutralize 100% of carbon emissions from paying taxes on the purchase of equipment and software for processing, converting and mining cryptocurrencies.
The Brazilian authorities are very loyal to the cryptocurrency industry. At the end of last year, a proposal was submitted to the Brazilian Congress to remove duties on the importation of ASIC miners into the country and taxes on bitcoin mining using renewable energy sources.
In January of this year, Brazil’s largest metropolis, Rio de Janeiro, invested 1% of the capital of the city budget in cryptocurrencies. At the end of the month, Rio de Janeiro’s economy minister, Chicao Bulhões, said the city was “reviving” after reports of cryptocurrency purchases.
