Aureo Ribeiro, a member of the Brazilian Chamber of Deputies, prepared a bill that recognizes bitcoin as a legal tender, and also toughens the fight against cryptocurrency Ponzi schemes.
The bill by Aureo Ribeiro is expected to be submitted to the Brazilian Chamber of Deputies in the coming days. The purpose of the bill is to clearly outline the regulatory rules regarding cryptocurrency transactions. The document assumes the recognition of bitcoin as a legal tender.
“We want to separate the wheat from the chaff, create rules so that you can trade, know where you can buy and who you are dealing with. With the help of cryptocurrencies, you can buy a house, a car, go to McDonald’s to buy a hamburger, it will be legal tender in the country, as has already happened in other countries,” Ribeiro said.
The MP noted that Brazilians already have the right to buy, sell and invest in crypto assets, but stressed the lack of regulatory oversight over the fledgling industry.
“We have been discussing a text for several years that recognizes that this asset exists. This will make it possible to make transactions with this asset in our country, which will be regulated by a government agency. We have already entered into an agreement with the Central Bank and the Brazilian Securities and Exchange Commission (CVM) regarding the potential of this asset and its recognition, for example, within the value of real estate or currency of daily use.”
In addition, the bill provides for tougher penalties for financial crimes related to the use of cryptocurrencies: the size of the fine for such crimes doubles, from one-third of the amount of criminal proceeds to two-thirds, and also increases the lower threshold of imprisonment from three to four years, with the upper threshold being increased from 10 to 16 years.
According to Ribeiro, the bill received broad support from the Brazilian government and has already been agreed with the Chairman of the Chamber of Deputies,.
According to a poll by Sherlock Communications and Toluna, 48% of Brazilians support the adoption of bitcoin as a means of payment, 31% do not oppose and 17% strongly agree.
Brazil could become the second country in Latin America, after El Salvador, where bitcoin is recognized as legal tender.