The cryptocurrency law project was approved by a session Chamber of Deputies on November 29 in which the law project and was put on hold several times due to the general elections held last month, will now be proposed by President Jair Bolsonaro and after finalising and It will be approved before it is declared legally.
Deputies voted to eliminate most of the changes made by the Senate in order to transmit the law with a greater form and more general status and to provide an opportunity to prepare other rules later. Deputy Expedito Neto, the bill’s exponent, comments on the importance of his legislation for the country and says he is voting on a historic issue where the current laws governing activity with digital assets are ahead of others. What kind of complete support they are getting from the government and the future. The blackout process intensified due to the unknown stance of the government of President-elect Luis Inácio Lula da Silva on the matter, according to local media reports, and claims by some delegates that the bill could be criticised and resisted by the new government which is to be inaugurated. To be done on 1st January.
One issue that was left out of the final document was a tax cut that was proposed to apply to cryptocurrency mining industries that use green energy in their operations. The reporter of this project claimed that in this case all tax related rules should be defined or outlined by other legislators.
If we talk about another challenge which was one of your issues Segregation of client assets it will force virtual asset service providers to segregate clients’ funds and their own funds and this is a topic of discussion centre many representatives of this used to protect the user’s funds from being used and get them out of harm’s way. As we know, the major cryptocurrency exchange FTX recently collapsed as well as lost its popularity.
The opposing side prevailed and analysts said that not being able to leverage client funds to operate could limit a portfolio, which could lead to the brokerage firm and other players in the sector offering spot-based trading products. But for now what kind of warranty should be given to the manufactures and users of these products has to be defined by the rules. The approval of the cryptocurrency law has selected VASP and other companies using the country’s domestic industry and a starting point for regulation that will lead to oversight by a regulator that will be appointed by the Executive and the Central Bank of Brazil or any other institution that can be specialised in all these.
Many analysts agree that this is only the first phase of regulation and that more changes to the law and more specific rules are expected in the coming years. This is the opinion of Isaac Costa, partner at Ward Advogados, who says such a law will probably take two years to come into effect and believes its approval is only a symbolic act. This is because it will be introduced with very general guidelines and will then have to be further developed and, according to Marcelo Castro, an advocate of digital law, the purpose of this bill is to establish the basis that will form the basis of future legislation and provide subsidy for regulation.
