Bitcoin regulation in Brazil advances in the Federal Senate

The Bitcoin regulation bill in Brazil moved forward again in the Federal Senate.

After the opinion of the Plenary, it was decided that Bill No. 4,207/2020, presented by Senator Soraya Thronicke (PSL/MS), will go to the Economic Affairs Committee (CAE).

Thus, between August 18 and 24, 2021, the CAE will present amendments to a final project in Committee.

According to the Senate Agency, the Terminative Decision is the one approved by the Commission and which does not go to plenary, and can be sent directly to the Chamber of Deputies or presidential sanction.

“It’s the one taken by a commission, with the value of a decision by the Senate. After being approved by the commission, some projects do not go to the Plenary, they are sent directly to the Chamber of Deputies, sent for sanction, promulgated or archived.”

Also according to the Senate Agency, the resources “they will only be voted on by the Senate Plenary if an appeal with this objective, signed by at least nine senators, is presented to the President of the House. After voting on the committee’s opinion, the deadline for filing an appeal for consideration of the matter in the Senate Plenary is five working days.”

What does the Bitcoin regulation bill that is advancing in the Federal Senate say?

Bill No. 4,207/2020 is currently being processed together with two other bills presented in 2019. The three bills for Bitcoin regulation were unified last May, by decision of the senators.

Thus, the Brazilian cryptocurrency market would undergo changes, with regulatory requirements to be proposed by the Central Bank of Brazil and the Brazilian Securities Commission.

In order to work, if the project is approved with the approval of President Jair Bolsonaro, the brokers must have operating licenses, preventing money laundering crimes and other illegal practices.

In addition, it creates norms for the issuance of digital currencies in Brazil, which must also be supervised by Brazilian regulatory agencies.

The authors of the projects that regulate Bitcoin in Brazil and that are being processed together are Senator Soraya Thronicke (PSL/MS), Senators Styvenson Valentim (PODEMOS/RN) and Flávio Arns (REDE/PR).

Proceedings of the Bill that regulates Bitcoin in Brazil by the Federal Senate advances
Proceeding of the Bill that regulates Bitcoin in Brazil by the Federal Senate advances/Reproduction

The next steps should now be described by the Committee on Economic Affairs, which can send the final text for review by the Chamber of Deputies and even directly for presidential approval.

In the South American region, Brazil is one more to have a bill on Bitcoin in process quickly, since Argentina, Paraguay, Colombia and Uruguay are also currently analyzing the subject. In the Chamber of Deputies there are also PLs on the subject in progress.