Lawmakers in the developing BRICS-country, Brazil, have proposed legislative reforms in order to better regulate the cryptocurrency market, reports Coindesk. Brazil’s official bodies have been ignoring cryptocurrency for a long time, but the proposed regulations would officialise a potentially big crypto market for the Latin American country.
Cryptocurrency & Brazilian Banking
Just before the news of regulating cryptocurrency, the Central Bank of Brazil formed groups to study cryptocurrency trends. This is in order to better implement structural reforms regarding the digital currencies.
A Central Bank statement, on 21 August, said that it formed these study groups in large part due to growing Brazilian interest in online payment solutions. This has manifested in a sharp increase in online payments over recent years.
There is positive speculation that Brazil might introduce its own native crypto coin, following the trends in neighbouring countries. For instance, Argentina has seen an increased use in Bitcoin. Venezuela has also been encouraging more use of its native coin, Petro, in large part to combat the country’s economic problems, reports Invezz.
Brazil’s proposed regulations are being spearheaded by Senator Soraya Thronicke, a member of the Social Liberal Party, reports Coindesk. Security and tax institutions, along with the Central Bank, will take on supervisory powers over the burgeoning industry.
The regulations would protect and monitor, and perhaps tax, cryptocurrency exchanges. This follows from fellow BRICS countries Russia, China and South Africa all implementing similar legislation in the past weeks. The respective regulations are to better monitor cryptocurrency trade, and tax them appropriately.
Although no one knows how and when Brazil’s crypto regulations will take place, one may speculate the modes the regulations may take, judging from Brazil’s developmental partners in BRICS.