President of Brazil, Jair Bolsonaro, recently signed a bill related to crypto regulations. The bill is the country’s first framework, passed by the nation’s Senate and Chamber of Deputies.

According to the official federal gazette, crypto is the digital representation of an asset that can be transferred, traded, and used as a mode of payment and investments.  The new laws focus more on preventing money laundering and concealment of assets or any other misuse. With this law, authorities get the power to impose imprisonment for lawbreakers.

The bill was signed into law on Thursday, and it will take 180 days to be effective. The crypto companies will get time till then to adapt themselves to the updated rules.

In late November, the bill was passed through parliament. With this bill into law, crypto firms can now register and establish their physical offices in the country. 

This will also allow a new federal agency to regulate digital asset firms and establish a “virtual service provider” license. 

The Security and Exchange Commission of Brazil will look into digital assets considered securities and regulated by an entity yet to be established. The asset which does not fall into this category will be taken care of by a new body that needs to be formed.

After FTX’s collapse in November, similar laws are being fast-tracked and made their way into several jurisdictions. Indonesia is also working on similar lines and will move regulation of the industry from the Commodity Futures Trading Regulatory Agency to the Financial Service Authority.

Last week, the Security Administrators of Canada passed rules to ban the provision of cryptocurrency margin trading to Canadian clients.

The director of government relations at 2TM, Julien Dutra, said, The law “was something we all wanted, not only the crypto industry but investors as well.”

The law “was something we all wanted, not only the crypto industry but investors as well,” said Julien Dutra, director of government relations at 2TM, the holding company that owns brokerage Mercado Bitcoin. In his view, it’s a step that will boost private investment in the domestic crypto market. 

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