The Brazilian Chamber of Deputies has passed a legal bill that legalises the use of cryptocurrencies as a payment method for banks within the country. However, for the law to fully come into effect, it still needs the approval of the Brazilian president.
The passing of this law allows banks to offer payment services around Bitcoin. A new legal framework has been approved that will include digital currencies and frequent traveller rewards from airlines in payment arrangements under the country’s supervision.
The law would give crypto payments legal status, but not legal tender status. This means, then, that banks can offer cryptocurrency payment services, thereby facilitating the use of crypto for the purchase and sale of ordinary goods.
In addition to the legal status that the draft law allows, there are also new rules for the operation of cryptocurrency exchange platforms and the custody and management of cryptocurrencies by intermediaries. If the law is passed, these companies will have to obtain a virtual service provider licence and fraud can then result in a distribution of two to six years in prison and compensation.
Brazil has made great progress in terms of regulation and acceptance of cryptocurrencies by investors. In all of Latin America, the country is the one with the most cryptocurrency ETFs and most major banks currently offer some kind of exposure to cryptocurrency investments.
Check out our blog post about the most popular crypto trends in 2022 to learn more.