Brazilian legislature have established a comprehensive legal framework for cryptocurrency trade and use in the country.
The new guidelines in bill 2.303/15, which were approved on Tuesday evening in the country’s capital of Brasilia, acknowledge bitcoin as a digital representation of value that may be used as a method of payment as well as an investment instrument in the South American country.
The bill gives the executive branch the authority to appoint government entities to monitor the market. When bitcoin is utilized as a payment method, the Central Bank of Brazil (BCB) is expected to be in control, while the country’s securities and exchange commission (CVM) would be the watchdog. The BCB and CVM, as well as the federal tax authority (RFB), assisted parliamentarians in crafting the overhaul legislation.
The bill, which applies extensively to a sector known as “virtual assets,” now just need the President’s signature before it becomes law. It in no way makes bitcoin or any other cryptocurrency legal money in the country.