While it‘s still early to speculate if Brazil is following in El Salvador’s footsteps, the latest proposal demonstrates the country racing towards meaningfully regulating the crypto industry as adoption reaches a pivotal stage.
The latest bill, presented by Federal Deputy Paulo Martins on June 10, seeks to add Bitcoin (BTC) and other cryptocurrencies as a payment method.
The detailed legislative proposal is an addition to the countrys existing law – Article 835 of the Civil Procedure Code.
While the proposed addition will not necessarily make crypto legal tender in the country, it will help the asset class to be used as a financial asset for various purposes, including means of exchange or payment, or instrument of access to goods and services or investment.
The bill is headed to the South American countrys legislators, who will now hold discussions before the additions are passed by the Senate and are signed into law by the president.
The focus will also be on protecting users private keys as well as providing new powers and limitations that Brazilian courts would possess if crypto is recognized as a financial asset. This includes actions such as freezing exchange accounts.
Brazil is one of the hottest crypto markets in Latin America, and the government has been working on getting a cryptocurrency bill passed by the year-end. For more blockchain news, please download WikiBit - the Global Blockchain Regulatory Inquiry APP.
Brazils crypto trading volumes have soared in recent years. As a result, the federal judges in the country are currently receiving training on crypto-related matters as it anticipates an increase in such court cases.
Mercado Bitcoin, the largest cryptocurrency exchange in Brazil, recently partnered with Stellar Development Foundation (SDF) to participate in the development of the countrys central bank digital currency (CBDC).