The Brazilian Senate has approved legislation that brings the country closer to regulating cryptocurrency transactions.
What happened: The bill drafted by the senator Flavio Arns offers the regulation of cryptocurrency assets and offers their supervision between the central bank and the tax agency of the country.
The measure has yet to be voted on by the country’s Chamber of Deputies and could still be vetoed by the Brazilian president.
See also: How to get free crypto
Why is this important: Arns’ bill will exempt cryptocurrencies from the jurisdiction of Brazil’s Securities and Exchange Commission. However, initial coin offerings will be the responsibility of the regulator.
In particular, the bill exempts material such as Bitcoin BTC/USD mining taxation until 2029 if companies are 100% carbon neutral.
Fines and prison terms ranging from four to eight years have been proposed in the legislation for crimes involving digital assets.
In June 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender. The Central American nation plans to harness the energy of volcanoes to extract the centerpiece.
Price Action: At press time, Bitcoin was trading up 3.2% over 24 hours at $41,366.85, according to data from Benzinga Pro.
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