Brazil Introduces Firm Guidelines on Crypto-Related Financial Crimes

Brazil’s Chamber of Deputies imposed new rules on crimes involving cryptocurrencies. The new guidelines include harsher penalties which increase from one to two-thirds. By introducing this law, Brazil could fight against laundering activities using digital currencies. The bill awaits review from the Plenary of the Chamber before passing it into law.

A New Age of Regulation in Brazil?

As of now, laundering suspects face a jail term of three to ten years. The culprits also attract heavy fines for engaging in financial crimes. Once the rule becomes official, lawbreakers could face a 4-17 year imprisonment. The jail term also includes a hefty fine.

Federal Deputy Aureo Ribeiro admits the bill might protect Brazilians from crypto scams. Ribeiro says that close to 300,00 citizens in Rio were victims of crypto pyramid schemes. Such events call Auero and other deputies to regulate the digital asset market in Brazil. However, the federal official further mentions that those dishonest individuals will not deceive innocent investors.

Most of the exploiters misleading citizens usually go unpunished. As such, the regulation proposal could help boost virtual asset investments. In turn, Brazilians can take part in the growing industry without fear of losses.

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Crypto Services on the Spotlight

The bill also touches on other categories surrounding the cryptocurrency space. However, it mainly focuses on digital currency exchanges, custody, trading, and payments. Furthermore, Ribeiro defines virtual asset providers as those who support digital currency exchange.

The providers also engage in the possession and transfer of digital assets. In case of fraudulent claims, the providers could meet a jail term of eight years. An extra fine also applies to the platforms.

More Details on the Bill

Operating without a legal license in Brazil is another financial crime. Thus, all unregistered virtual asset providers may attract four-year imprisonment and a fine. The bill further stresses the need for identifying customers and recording transactions. Institutions can provide virtual asset services with the approval of Brazil’s Central Bank.

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The regulation may also generate revenue for the country. After passing the rule, virtual asset providers will have 180 days to apply the law. In the coming days, Bitcoin could become a legal payment method if the law passes. It means that citizens can use BTC to get goods and services. Hence, it might fulfill the idea of global crypto adoption.