Brazilian Cryptocurrency Law Likely to Be Reviewed by Lula’s Government – Regulation Bitcoin News
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The recently passed Brazilian cryptocurrency law will likely be reviewed and revised by the government of Luis Inacio “Lula” Da Silva, who recently took office. According to the statements of the former presenter of the law, Expedito Netto, the new government is likely to review the law to include some of the issues left for its approval.
Brazil’s crypto law still not final, former presenters
Brazil’s recently sanctioned cryptocurrency law is likely to come up for revision in the country’s newly appointed Congress, according to statements from its former presenter, Vice President Expeditto Netto. Netto explained that the proposed changes to the law are not yet final, as the project may once again go into discussion, where some remaining issues will be discussed for its approval.
Neto, who was no longer elected as a deputy in last year’s general vote, still has key issues that need to be discussed and included in the law. One of these was whether or not to force virtual asset service providers to separate users’ funds from their own funds. The matter was eventually dropped, as analysts explained that forcing this on companies in the industry could affect the products they offer due to capital constraints.
However, there is international pressure to impose such restrictions on cryptocurrency exchanges after FTX, one of the world’s largest cryptocurrency exchanges, filed for bankruptcy in November.
Other less controversial topics were also left out, such as green mining tax breaks.
The benefits of the law
The law brings changes that analysts say could help customers feel safer investing in cryptocurrency assets. The Central Bank of Brazil became the organization responsible for the supervision and registration of the country’s stock exchanges and depositories. In addition, the legislation allows the Brazilian Securities Commission (CVM) to intervene in portfolio offers from these exchanges and limit offers deemed illegal.
Another touted benefit of the law is that it aims to criminalize cryptocurrency scams outright and impose penalties on the people behind them.
However, experts have expressed their displeasure with the state in which the law was passed, saying that while this is indeed a good start, more regulation is needed to expand what is already laid down in the law.
What do you think about the possibility of the government reforming the recently passed Brazilian cryptocurrency law? Let us know in the comments section below.
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