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HIGHLIGHTS
- On 22 February, the Brazilian Senate unanimously approved the crypto bill proposed by the Economic Affairs Committee in Rio de Janeiro.
- The bill is expected to address growing financial crimes within the crypto space.
- Once passed, Brazil could very well become the biggest Latin American country to regulate cryptocurrency.
Ever since El Salvador made Bitcoin their legal tender last year, several Latin American countries have been exploring the idea of doing the same. Countries, such as Brazil, Venezuela, Paraguay, etc., have been experimenting on how to increase crypto adoption, but also have been thinking around how legalising Bitcoin could well be beneficial for the economy.
In fact, El Salvador accepted Bitcoin as legal tender last year. Following this, a survey was conducted in Brazil wherein more than half of the population said that they are ready for a similar experiment in their country. This resulted in a crypto boom with several leading crypto exchanges such as Coinbase, Binance, Crypto.com banking upon Brazil’s growth eye it as the next crypto powerhouse in Latin America.
Now, with the introduction of the bill, it is for sure that the Brazilian Senate is seriously mulling about regulating the cryptos with the hope that it will increase crypto usage in the country.
What is Brazil’s Crypto Regulation Bill?
The stage is set
On 22 February, the Brazilian Senate unanimously approved the crypto bill proposed by the Economic Affairs Committee in Rio de Janeiro. Once passed, Brazil could very well become the biggest Latin American country to regulate cryptocurrency.
Brazilian Senator Iraja Abreu said that with almost 3 million people are already registered with various exchanges, it is critical for the crypto asset trading companies to come under the purview of the central bank or the Securities and Exchange Commission.
Abreu hopes that after the bill is approved, the process to adopt cryptos and use them in the supermarket, in commerce will get easier.
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Latin America the hub of crypto activities
The Latin America region has been a crypto hub and is considered as one of the most promising and developing markets for cryptos. In fact, after El Salvador adopted Bitcoin as its legal tender, the country saw a significant spike in the tourism sector. The activities grew by almost 30%, as per the government data.
According to El Salvador tourism minister Morena Valdez, a public poll showed that the tourism sector got a boost, especially in November and December 2021, following its Bitcoin adoption in September.
The minister said that in those two months the number of foreign visitors touched 1.4 million visitors, instead of 1.1 million in September.
Conclusion
The regulation bill in Brazil is a positive sign in terms of making cryptocurrency mainstream in Brazil. Together with El Salvador, Brazil could lead the next wave of crypto adoption in the region, which would help the leading exchanges to operate in the country in a legal manner. Besides, investors will also feel comfortable and safe in the new regulated regime.
