Bill regulating cryptocurrencies in Brazil includes registration of brokerage firms

RIO DE JANEIRO, BRAZIL – The bill proposing the regulation of cryptocurrencies in Brazil has been under consideration since 2015 and has now undergone new changes. As shown in the opinion published on Wednesday, September 29, on the Chamber of Deputies’ website, among these is the change that settles an issue that was in doubt among deputies: mileage plans.

The rapporteur considered that mileage plans are covered by current law and do not need new regulations, so they should not be considered as digital currencies.

The new text states: “We have determined that the provision of virtual assets services must comply with guidelines according to parameters to be established by the regulatory body, as suggested by several market players, including the Brazilian Federation of Banks (FEBRABAN).”

The bill leaves it up to the federal government to define the regulatory body for cryptocurrencies.

“Another relevant point of the rule is not to encroach on the Executive Branch’s organizational space, leaving to the latter the definition of which body or entity in the federal government will be competent to regulate the virtual assets market and its service providers, in line with the constitutional principle of separation of powers.”

It further says that operations conducted with cryptoassets should comply with consumer protection and defense laws. “Operations with virtual assets, as provided in the guidelines cited above, shall observe the protection and defense of the consumer whenever there is a consumer relationship.”

The point that addresses the criminal aspect is perhaps the most significant. Deputies included the specific classification of the crime of fraud in the provision of services involving cryptoassets.

In addition, the bill proposes that companies operating in the cryptocurrency business must be authorized to perform the services. In other words, companies that are not legally registered will be penalized.

The new text also includes an increase in the penalty for money laundering crimes using cryptoassets. Before coming into force, the text establishes transition rules for cryptoasset services providers (cryptocurrency exchanges) active on the date the new regulation is published. If passed, these companies will have 180 days to adjust to the rules.