Last Tuesday night, the Brazilian Senate plenary approved a bill regulating crypto transactions.
After being introduced by Senator Flávio Arns, the bill will proceed to the Brazilian Chamber of Deputies for consideration. Upon approval, the executive branch has the power to veto it.
For crimes against the Brazilian financial system, crypto companies will be treated the same as other financial institutions under the label “virtual service providers.”
If approved, the bill prevents the Brazilian Securities and Exchange Commission from supervising the crypto market, with the exception of initial coin offerings (ICO). Furthermore, it specifies that the executive branch of the Brazilian government will establish an agency to supervise the crypto sector.
In February, the Brazilian Senate’s economic affairs committee had approved Arns’ bill, shelving two other crypto bills presented by senators Styvenson Valentim and Soraya Thronicke.
Additionally, the bill creates a new crime that involves virtual assets, punishable by between two and six years in prison. Sen. Rodrigo Pacheco requested a reduction in the sentence after it was originally proposed to be between four and eight years.