The Brazilian Senate has passed a bill in a plenary session that aims to regulate the cryptocurrency industry once made law.
The bill, first proposed in 2015 by Federal Deputy Aureo Ribeiro, was passed in the Senate sitting chaired by the Senate President Rodrigo Pacheco.
The Senate has tasked the country’s executive branch to formulate rules governing crypto-assets and appoint a regulator or delegate the functions to the CVM or the Central Bank.
The legislators have also proposed a proportional penalty for the illegal activities committed by cryptocurrency users.
The Brazilian senior vice president of digital currencies at CleanSpark welcomes the move citing the need for proper regulation in the space to encourage crypto miners in the country.
The draft law will await the approval of the Chamber of Deputies and a sign-off by President Jair Bolsonaro before becoming a law.
The bill will reportedly not likely encounter challenges in the Chamber of Deputies, with the whole process expected to be completed before 2022.