Crypto became a hot topic for Brazilian Congressmen in 2021 and it seems that we are close to have a regulation. A Law Project (nº 4401/21) was approved by House of Representatives on December 2021 which was also approved, with minor adjustments, by Senate on April 2022. Due to the changes in Senate, the project of law will return to House of Representatives for new vote.
The main points covered by Law Project are:
– defines what is a crypto
– set up parameters to be observed by service providers dealing with crypto;
– states clearly that its dispositions are not applicable to securities
– service providers dealing with crypto should obtain, from a governmental division (to be defined) a license to operate
– authorizes financial institutions already established to also render services related to crypto
– states clearly the responsibility of services providers related to anti money laundry
– changes penal code to include fraud related to crypto as a qualified crime
– establishes accounting principles, such as segregated patrimony (between proprietary and third party crypto)
– also establishes some tax reductions related to hardware and software used to process, mining and maintain crypto
A final vote on House of Representatives is expected to happen soon and we will keep monitoring.
