On Thursday, Brazil’s President Jair Bolsonaro signed a crypto regulatory bill recently passed by the country’s Chamber of Deputies and Senate. The bill forbids the use of cryptocurrencies such as Bitcoin. Several digital currencies are now authorized payment methods under recently signed legislation.
The new law makes fraud involving virtual assets punishable by four to six years in prison and a fine. In addition, it generates a “virtual service provider” license. It also paves the way for the creation of a new federal body to oversee companies dealing in digital assets.
In 180 Days, The New Crypto Law Will Go Into Effect
The announcement by Bolsonaro does not specify which federal agency will be in charge of overseeing cryptocurrency payments. As a result of FTX’s failure, the law also includes rules requiring exchanges to differentiate between user and corporate assets. Businesses will have 180 days to adapt to the new regulations after the approval on Thursday.
The Securities Administrators of Canada issued regulations last Monday prohibiting the sale of cryptocurrencies to Canadian clients on margin. Securities legislation will apply to any platform in the country. Crypto trading platforms that have yet to register are also included.
Unregistered platforms will soon be given a deadline by which they must submit a Pre-Registration Undertaking to their major regulator (PRU). They must affirm their intent to adhere to the standards required of organizations that have already been registered in PRU. If they do not, they may face punishment. This year has seen the bankruptcy of several cryptocurrency companies, including Celsius, Voyager, and BlockFi.