The Brazilian Senate is scheduled to vote on a bill that would make Brazil the largest country in Latin America to regulate cryptocurrency. Senator Flavio Arna proposed the bill that needs to be voted on by the Senate. The bill creates the label ‘virtual service providers’ for cryptocurrency enterprises that are subjected to criminal liability for violation of Brazil’s financial system. On Tuesday, the Senate’s Economic Affairs Committee unanimously supported the crypto bill, thus raising the likelihood that it would be voted on the Senate floor. Once ratified by both the Senate as well as the lower house, it will then be sent to be signed into law by Brazilian President Jair Bolsonaro. The legislation establishes guidelines for the provision of ‘virtual asset services.’ On February 22, Brazilian Senator Irajá Abreu stated that he expects the bill to help reduce several financial crimes perpetrated using cryptocurrency. According to the Senator, the objective of the project is to “Curb or restrict illegal practices, such as money laundering, tax evasion, and many other crimes. There is a market that is licit, legal, which is the vast majority of this market, but there are exceptions.” Last year, Brazil’s lower house adopted a new bill governing the trade of virtual currencies in the country. According to Abreu, the new rule, which is more focused on investments than on popular usage, creates a conducive atmosphere for more fre...
