Legal Project Determines the Deadline of Brazilian Cryptocurrency Regulation – Regulating Bitcoin News

A legal project launched at the Brazilian National Congress in June has recently become the focus of attention because it sets a fixed period for the executive branch to start regulating cryptocurrency transactions. If approved, the proposal will establish a tax payment method for cryptocurrency-based transactions. The project is being reviewed by the House of Representatives and will be finalized by the Finance and Taxation Committee.

Brazil will regulate cryptocurrency trading

A legal project proposal, Act No. 2140/21, introduce Submitted to the Brazilian Chamber of Deputies in June, it has now become the focus of attention because it sets a fixed period for cryptocurrency transactions in the executive branch of the government. If approved, it will have a 180-day time limit to design all necessary structures to effectively regulate cryptocurrency transactions.The project was created by the deputy Alexander Frotta, Part of the Brazilian Social Democratic Party (PSDB).

Frota stated that the lack of clear regulation of cryptocurrencies puts investors and the traditional financial system at risk, because encryption can help transfer funds abroad without supervision. Frota announced:

For private and public banks, strict supervision and inspection must be carried out to prevent people from being deceived by the promise of high personal profits. This has already happened to a large extent.

In the past few years, Brazil has been a country known for crimes related to encryption-related scams.The state took swift action to stop these plans and organized Some operate Shut down and arrest those responsible for illegal cryptocurrency-related activities in the past few months.

Taxes may be coming

Another important part of the project states that business operations carried out abroad must be reviewed in accordance with the same rules that apply to banks, including tax regulations. However, due to the nature of cryptocurrency transactions, it is currently unclear how to proceed.This issue is currently being caused by a Special committee Of the House of Representatives.

However, Brazil is very open to the issuance of central bank digital currencies.The Central Bank of Brazil is Research Create Digital Real and discuss whether the Brazilian population really needs this tool.

What do you think of the regulation and taxation of cryptocurrency transactions? Tell us in the comments section below.

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