Lula’s government likely to review Brazil’s cryptocurrency law

The recently passed Brazilian cryptocurrency law will likely be reviewed and revised by the newly inaugurated government of Luis Inacio “Lula” Da Silva. According to statements by the former rapporteur for the law, Expedito Netto, it is likely that the new government will revise the law to include some issues that were pending approval.

Brazilian crypto law is not yet final, says former rapporteur

Brazil’s recently enacted cryptocurrency law will likely be reviewed by the country’s newly appointed congress, according to statements carried out by its former rapporteur, the deputy Expeditto Netto. Netto explained that the proposed changes in the law are not final yet, since the bill could go back into discussion to review some of the issues left for approval.

For Netto, who was not re-elected as deputy in the general vote that took place last year, there are still key issues that need to be discussed and included in the law. One of them was whether or not to force virtual asset service providers to segregate user funds from their own funds. The issue was ultimately left out, as analysts explained that forcing this on companies in the sector could affect the products they could offer due to capital restrictions.

However, there is international pressure for such restrictions on cryptocurrency exchanges after FTX, one of the world’s largest cryptocurrency exchanges, filed for bankruptcy in November.

Other less controversial issues were also left out, such as tax breaks for green mining operations.

Benefits of the Law

The law brings changes that analysts say could help clients feel more secure when investing in cryptocurrency assets. The Central Bank of Brazil became the body in charge of monitoring and registering exchange and custody institutions in the country. In addition, the legislation gives room for the National Securities and Exchange Commission (CVM) to intervene in portfolio offers from these exchanges, restricting those considered illegal.

Another touted benefit of the law is that it aims to directly criminalize cryptocurrency scams, setting penalties for the people behind them.

However, experts have expressed their dissatisfaction with the state in which the law was passed, saying that while this is a good start, there needs to be additional regulation to extend what has already been laid out in the law.

What do you think about the possibility of the government rehashing the recently approved Brazilian cryptocurrency law? Tell us in the comment section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as someone who was late to the game, entering the cryptosphere when the price spike occurred in December 2017. With a background in computer engineering, living in Venezuela and being impacted by the rise of cryptocurrencies on a societal level, offers a different point of view. about the success of cryptocurrencies and how he helps the unbanked and underserved.

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