Brazil's Senate Announces Imminent Approval of "Bitcoin Law"

According to reports, the bill regulating the cryptocurrency market in Brazil is expected to be approved by the National Assembly in the first half of this year. The legislation, which has been debated in the House of Representatives since 2015, was approved in its first round of deliberations. The Senate attached it to another cryptocurrency-focused bill that the Senate Economic Affairs Committee approved. The two lawmakers, Senator Irajá Abreu and Senator Aureo Ribeiro, who are rapporteurs on the above-mentioned proposals in their respective legislative chambers, are drafting a unified bill's text that will be presented to the full Senate for a vote. The plenary’s low approval will not make bitcoin legal tender in Brazil, as in El Salvador. Instead, the proposed law would allow Brazil’s president to identify a federal entity responsible for setting the rules for cryptocurrencies. The president will create a new regulatory agency or delegate this function to the country's Securities and Exchange Commission (CVM) or the Central Bank of Brazil (BC). Regulators will be responsible for defining market norms and establishing norms in line with international standards to prevent money laundering and the concealment of assets. The bill also proposes a jail term of four to eight years for those who commit fraud in providing virtual asset services and fines. Another point highlighted by the bill is a series of incentives for cryptocurrency miners to do business in Brazil. It proposes tax exemptions for ASIC imports into the country. However, this may not be enough to attract Bitcoin miners to the country, as Brazil has the highest energy prices in South America, about five times higher than countries such as Paraguay and Venezuela.