The economic affairs committee for the Brazilian Senate authorized a bill regulating cryptocurrency transactions on Tuesday.
Senator Flávio Arns introduced the bill, which must be voted on by the Senate plenary and, if it is authorized, then by the Brazilian Chamber of Deputies. The bill is then vetoed by the executive branch.
Following the approval of Arns’ bill, the Brazilian Senate scrapped two other crypto bills introduced by senators Styvenson Valentim and Soraya Thronicke.
Arns’ bill generates the label “virtual service providers” for crypto firms, which will face criminal charges if they violate the Brazilian financial system.
Arns’ bill prohibits the Brazilian Securities and Exchange Commission from inspecting the Brazilian crypto ecosystem – except initial coin offerings (ICO) – and authorizes the Brazilian executive branch to appoint a supervisor.
In the bill, Arns has a proposal of a joint abstract of cryptocurrency between the Brazilian Central Bank and Receita Federal – the tax collection agency.
If the bill is authorized, the executive branch will be offering crypto firms permission for operation. Furthermore, cryptocurrency firms will be required to notify the Brazilian Financial Activities Control Council of any transactions alleged of money laundering.
The bill also establishes a new crime accomplished with virtual assets, punishable by four to eight years in prison and a monetary fine.
The bill exempts from taxation acquisition of machinery and software for processing, transforming, and mining cryptocurrencies by firms that negates 100 percent of emissions until 2029.
