The Brazilian Senate has approved a bill that brings the country closer to regulating cryptocurrency transactions.
What has happened
The bill drafted by Senator Flávio Arns proposes the regulation of cryptocurrency assets, as well as their supervision between the central bank and the country’s tax agency.
The measure still has to be voted on by the country’s lower house and could be vetoed by the Brazilian president.
Because it is important
The Arns bill will exempt cryptocurrencies from the jurisdiction of the Brazilian Securities and Exchange Commission. However, the initial coin offerings will be under the control of the regulator.
More specifically, the bill exempts hardware such as Bitcoin (CRYPTO: BTC) mining from taxes until 2029 if the companies are 100% carbon neutral.
In the legislation, fines and sentences of between four and eight years in prison have been proposed for crimes related to digital assets.
In June 2021, El Salvador became the first country in the world to adopt Bitcoin as legal currency. The Central American nation plans to harness the energy of volcanoes for mining the apex cryptocurrency.
The movement of prices
At press time, Bitcoin was trading 3.2% higher at $41,366.85 after a 24-hour tracking period, according to data from Benzinga Pro.