Brazil legalizes crypto payments, driving adoption

Although El Salvador has already made Bitcoin a legal tender, Brazil is yet to follow suit. This South American nation has recently passed crypto legislation stating crypto payments as a legal tender throughout the country.

The New Crypto Legislation News

The federal legislative body, the Chamber of Deputies, has approved a regulatory framework that allows crypto to be a legal payment method within its borders. However, the law is still in the pipeline as Brazil’s president is yet to sign the law to enact it.

The recently passed bill does not allow cryptocurrencies to be used as legal tender. The bill allows these digital currencies and air-mileage programs to be a part of payment method definitions under the central bank’s supervision.

After passing the law, Brazil’s executive branch decides on the supervising office for the whole initiative. Currently, the tokens are considered securities, policed under the CVM (Securities and Exchange Commission).

Also Read: Russia Policymakers Are Preparing Amendments to Launch a National Crypto Exchange

Features Of The Law

The aforementioned law also allows:

1. Creation of crypto exchange platform licenses
2. License for third-party custody and management of crypto

It also demands that the exchanges clearly define the user and company funds. This obligation would avoid future incidences like the FTX collapse.

Also Read: FIFA World Cup 2022 Uses Semi-Automated Offside Technology

Crypto Legislation To Term It As An Instrument Of Access

This new crypto legislation is not the first one out of Brazil. Last June, they issued a proposal allowing the locals to use crypto as a payment option. This law tags crypto assets as an instrument of access to investments, goods, or services.

Wrapping Up

The recent FTX collapse might drill a hole in the crypto ecosystem and hinder its growth. However, the crypto legislation news from Brazil shows the resilience of the crypto world. According to Cesar, Transfero Group CEO, the collapse will not affect the everyday crypto use of the locals.