Brazilian Parliament Postpones Vote on Bill to Regulate Crypto Assets

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Brazil's Chamber of Deputies has postponed its first reading of a digital currency bill from this week to October, a date immediately after the presidential election.

For the first time, a regulatory billcryptocurrency in Brazil was presented in February and unanimously approved by the Brazilian Senate Committee on Economic Affairs. According to local media, the adoption of the bill was delayed due to the fact that legislators did not reach a consensus on the final version.

The first article of the document implied thatCryptocurrency exchanges must keep their funds separate from user assets. According to the second article, before applying for a license allowing exchanges to operate in Brazil, marketplaces are required to obtain an Employer Identification Number (EIN) for tax purposes.

However, these provisions have been removed fromthe original version of the bill by Congressman Expedito Netto, who is responsible for introducing the bill in the lower house of the Brazilian Congress. The provisions have caused controversy among representatives of cryptocurrency platforms. Many local exchanges expressed agreement with the original text proposed by the Senate, which included the articles. And foreign platforms such as Binance and Bitso welcomed the changes proposed by Expedito Netto. Therefore, it was decided to resume discussions and consultations after summing up the results of the presidential elections in October.

If the bill is adopted, the authoritiesThe executive branch will oversee companies working with digital assets. The law also imposes severe penalties for cryptocurrency fraud: large fines and imprisonment of up to 16 years.

Due to the increase in cryptocurrencycrimes in Brazil, local prosecutors have created a separate unit to investigate them. Employees of the prosecutor's office also expressed their readiness to train those interested in the safe use of crypto-assets.