Brazilian lawmakers are working to provide stricter regulations for cryptocurrency-related crimes, approving a set of new penalties for laundering money with crypto.
According to an official announcement, the Special Committee of the Chamber of Deputies in Brazil has approved a bill that substantially tightens penalties against financial crimes that use cryptocurrencies such as Bitcoin (BTC).
The bill 2303/15 contains the latest regulatory amendments. They increase the fines from one third to two-thirds of the amount of laundering money. In addition to a fine, the bill proposes to increase minimum prison terms from 3 to 4 years and to increase maximum prison time from 10 to 16 years.
The announcement states that the bill will be subject to further discussion by the Chamber’s Pleenary.
Aureo Ribeiro, the federal deputy, stressed that the bill will protect Brazilians against crypto scams. He noted that over 300,000 people were negatively affected by “financial Pyramid Schemes with Cryptocurrency” in Rio de Janeiro.
“Without regulation, people don’t know where to turn. Brazil’s market will grow and adapt. Ribeiro said that there will be no profiteers using technology in Brazil to deceive millions.
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Ribeiro expressed optimism about the bill’s other provisions, which regulates cryptocurrency operations such as trading, custody and fiat exchanges. Cointelegraph Brazil reports that Ribeiro believes Bitcoin will be accepted in Brazil as payment once the bill becomes law.
Recent signs of cryptocurrency adoption and development in Brazil have been encouraging. Roberto Campos Neto (head of Brazil’s central banking) called for the state to embrace cryptocurrency by changing local regulations. After previous listings of several crypto ETFs, the Brazil Stock Exchange began trading in a second Bitcoin-exchange-traded fund in June.
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