Green Light to Cryptocurrency Payments from Brazil
Brazil's Chamber of Deputies has approved the bill titled “(PL) 4.041/2021” (Bill) regulating the cryptocurrency industry in the country. Once the Bill enters into force, all cryptocurrencies, including Bitcoin, will be able to be used as a means of payment in the country. In this context, cryptocurrencies will also have the status of investment instrument. However, it should be noted that the Bill does not grant official currency status to cryptocurrencies.
The fundamental regulation in the Bill is the license requirement. In this context, cryptocurrency companies must obtain a virtual service provider license to operate. In this way, it is aimed to strictly regulate companies operating as crypto money service providers in the country. Bill also imposes imprisonment and monetary fine as a penalty to those who commit fraud with virtual assets.