What is the state of crypto regulation in Brazil?

While regulating cryptocurrencies can have positive long-term impacts, the Brazilian government still can not decide on how to control this growing asset class

Since there is no central world authority, each government follows a different approach in regulating Bitcoin and other cryptocurrencies.

Some countries, like El Salvador, have approved Bitcoin as a legal tender, while others such as China have already implemented draconian regulations restricting cryptocurrencies and service providers.

We recently saw the Miami and New York mayors announcing that they will accept their paychecks in Bitcoin.

Latest reports suggest that a new law in Brazil will allow workers to accept Bitcoin as their salary, meaning the country could be on the verge of making Bitcoin legal tender.

Federal Deputy Luizão Goulart, a congressman, went on to propose a bill to legalise crypto payments as a mode of payment for public and private sector workers.

Goulart’s proposal asks for a new law that would allow all Brazilian workers to have an option to request employers for remuneration in cryptocurrencies.

However, the bill warrants crypto payments to be made only after selling a mutual agreement between the workers and the employer.

‘Bitcoin Bill’ still in progress

Recently, Brazil’s Federal Deputy Aureo Ribeiro revealed that Brazilians could soon be able to buy houses, cars and even McDonald’s with Bitcoin.

However, the proposed ‘Bitcoin Bill’, which many had anticipated would have received the green light by now, is reportedly still in progress.

The outlined document ‘PL 2303/15’, submitted by federal deputy Aureo Ribeiro is still on the table in the Chamber of Deputies, together with plans for a CBDC launch.

If it gets approved by the Chamber of Deputies this week, then Brazil looks set to follow El Salvador’s example and make Bitcoin legal tender.

According to Aureo, agreements with both the Central Bank and the Securities and Exchange Commission of Brazil (CVM) are already done and the bill itself had widespread government support and had already been aligned with the president of the Chamber of Deputies – Arthur Lira – meaning there are few further barriers to its approval.

Research by Sherlock Communications using the platform Toluna showed that 48% of Brazilians want Bitcoin adoption, with 31% agreeing and 17% strongly agreeing.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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