Ahead Of Lengser Position, Brazilian President Legislating The Use Of Crypto As A Payment Tool

Jair Bolsonaro, president of Brazil who will end his term on December 31, (photo: twitter @jairbolsonaro)

JAKARTA - Jair Bolsonaro, the Brazilian president who will end his term on December 31, has signed a law aimed at legalizing the use of crypto as a legal payment method in the country.

In the publication of the official Brazilian federal government journal on December 22, Bolsonaro's office said the president had signed the bill 14,478 into law after obtaining approval from the State Representative Council. The legislature sent a letter to the presidential table on November 29 as the final step in recognizing crypto payments.

According to the text of the bill, Brazilians will not be able to use cryptocurrencies such as Bitcoin as legal tender in the country, as happened in El Salvador. However, the newly passed law covers many digital currencies under the definition of legal payment methods in Brazil. It also establishes a licensing regime for virtual asset service providers and sets penalties for fraud using digital assets.

Bolsonaro's announcement shows which federal agent is responsible for overseeing crypto payments. However, like the United States, digital assets deemed securities are under the umbrella of the Brazilian Securities and Exchange Commission regulations.

Reported Cointelegraph, the Act also includes provisions likely made in response to the collapse of FTX, which requires exchanges to differentiate between the company's users and assets.

This crypto law will take effect in 180 days, possibly in June 2023. Bolsonaro is scheduled to leave office within days, after which Luiz In waycio Lula da Silva, or Lula,' will become president on January 1.

Lama menjabat sebagai presiden Brasil dari tahun 2003 hingga 2010 dan sebelumnya juga telah membuat pernyataan yang mendukung pendopsi kripto dan blockchain.