The lower house of Brazil has recently passed a bill to make cryptocurrency payments legal in the country. At present, many governments around the world have become concerned about their role in cryptocurrency-related regulations.
The phenomenon has been expedited on account of the collapse of FTX Group, which was a regulated cryptocurrency exchange.
The bill is now passed to President Jair Bolsonaro for signing into the constitution of the country. The bill has also introduced new legal requirements for cryptocurrency enterprises to be registered under government agencies. Furthermore, the bill also calls for making physical office locations mandatory for cryptocurrency enterprises.
Global Adoption Index
Chainalysis is a cryptocurrency research and analytical enterprise. The crypto enterprise has ranked Brazil the 7th best place in the world that is conducive for greater cryptocurrency adoption as per its Global Adoption Index.
The Chamber of Deputies hailing from Brazil has issued a new statement claiming that the crypto regulation bill is going to empower the country in the matter of cryptocurrency management.
The statement also declared that the bill is going to pave the way for regulating all virtual asset enterprises under federal rule.
At the same time, the bill has also defined the code of conduct for cryptocurrency firms and laid the foundation for response in case of violation. The breach can result in the seizure of operations and prison time.
Cryptocurrency proponents are discussing the implications of similar cryptocurrency regulations in other countries. The Brazilian Parliament bill has also set a precedent for exchange with legal tender. At present, the parliament of Indonesia is working on a crypto-related bill.
Indonesian Finance Minister, Mulyani Indrawati has claimed that the introduction of crypto regulations is going to put the sector under the supervision of the Financial Services Authority. At present, the leading regulator in Indonesia is Commodity Futures Trading Regulatory Agency.
However, some investors are worried about the clashing impact of centralized government interference in the DeFi sector.