This year Brazil passed a law to recognize bitcoin as a legal tender which was a green light providing guidelines for digital assets. However, the bill was passed by the Brazilian Senate’s Economic affair committee to clear the way for the senate floor. Hence, if the national congress successfully passes the bill, it will be signed by President to legislate the bill into law.
The first country to recognize bitcoin was El Salvador as a legal tender; after the law passed, $30 was offered to every citizen for downloading their digital wallets. Meanwhile, later Cuba also announced recognition and regulated cryptocurrencies like bitcoin.
The bill was written about virtual assets, including the responsibilities of crypto service providers. Further, the bill also proposes who will be the enforced crypto regulating bodies, and they said the central bank of Brazil is on the expected list.
Senator Iraja Abreu, the draft’s rapporteur, initially proposed this crypto bill in 2019. Whether it was said that increasing adoption and regulation would be seen in the Brazilians when the bill will successfully pass. It was also noted that after the acceptance of the bill’s regulation, it would automatically increase the use of bitcoin even in supermarkets, commerce, car dealerships, and many more.
The Brazilian draft’s rapporteur also noted that when Brazil passed a law to recognize bitcoin as a legal tender, it will automatically give a trigger to curb crimes. However, passing Bitcoin as a legal tender was intended to restrict various illegal practices, including money laundering and tax evasion.
Hence the bill said that the providers of the virtual assets would have an anti-money laundering system. Apart from that, they will also be monitored so they can’t do any concealment or illicit use of digital assets. Furthermore, the person who breaches the bitcoin law will be imprisoned or charged with a fine.
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In short, Brazil passed low to recognize bitcoin as a legal tender to increase development. This law was passed to stop money laundering, tax practice, or any other illegal practice. But after introducing bitcoin, it is also possible that curb crimes will be increased. That’s why Brazil introduced an anti-money laundering system in all virtual assets providers.
Whether Brazil is safe from any concealments because the law also says that the one who breaches the law or tries to commit any illegal practice using digital assets will be punished, it was noted by the draft’s rapporteur if the law passes successfully the use of digital assets like bitcoin will also be increased. Later, you can use them in the supermarket, for car dealing, or in commerce.