Legal Framework for Cryptocurrencies: Lula should sign decree next week; understand

Three sources close to the matter commented to Crypto Times that the act should be a celebration alongside the event, which will address Real Digital, tokenization and regulation of cryptocurrencies in the country (Image: Agência Brasil)

The president Luiz Inacio Lula da Silva must sign the Legal Framework of Cryptocurrencies next week. the signature of Law 14,478/22 should take place during the Criptorama event, organized by the Associação Brasileira de Cryptoativos.

The event will take place in Brasilia on the 6th and 7th of June, where Lula must also sign a decree that defines the sector’s regulatory bodies.

Three sources close to the matter commented to the Crypto Times that the act should be a celebration together with the event, which will address the Digital Real, tokenization and regulation of cryptocurrencies in the country.

Currently, the law is between the sanction of the norm and its effectiveness. The deadline for it to take effect ends before June. She defines that the executive branch needs to appoint the authority that will regulate this sector. And in that same period that ends at the end of June, the document must also be enacted and signed by the president.

The decree that defines the regulatory authority is being prepared by the Ministry of Finance, central bank and the Securities and Exchange Commission. After signing by the executive branch, the regulation of the sector will be in the hands of the defined body.

the website of Cryptorama appoints the presidents of both municipalities, as well as the minister Fernando Haddadas speakers to be confirmed at the opening of the event.

What is the Cryptocurrency Legal Framework?

The Legal Framework for Cryptocurrencies came into force on December 22, 2022. The Law determines some guidelines for regulating the provision of cryptocurrency services. That is, it mainly regulates companies such as crypto exchanges and DTVM.

The bill was originally presented by Deputy Aureo Ribeiro (Solidariedade-RJ), and approved by the Chamber of Deputies and the Senate. The text was sanctioned without vetoes by President Jair Bolsonaro.

The law considers a virtual asset to be a digital representation of value that can be traded or transferred electronically and used to make payments or for investment purposes.

These will be able to exclusively provide the service of virtual assets or accumulate it with other activities, in the form of the regulation to be edited.

Among the duties of the regulatory body are: authorizing the operation and transfer of control of brokerage houses; supervising their operation; cancel, ex officio or upon request, authorizations; and establish the hypotheses in which the activities will be included in the exchange market or must be subject to the regulation of Brazilian capital abroad and foreign capital in the Country.

A also adds to the Penal Code a new criminal type of larceny, attributing imprisonment of four to eight years and a fine for those who organize, manage, offer or distribute portfolios, or intermediate operations involving cryptoassets.

In the Money Laundering Law, the text includes crimes carried out through the use of virtual assets among those with an aggravating factor of 1/3 to 2/3 more than the prison sentence of 3 to 10 years, when practiced repeatedly.

These companies must also keep a record of transactions for the purpose of passing on information to inspection bodies and combating organized crime and money laundering.

O Crypto Times contacted the advisory of the Presidency of the Republic, and we received information that the government is studying a decree on the subject, but points out that the date of signature has not yet been defined.

Source: Moneytimes

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