A bill in Brazil that was passed by the Senate’s Economic Affairs Committee to regulate digital assets has moved to the Senate for a vote.
If the bill, which the committee approved on February 22, gets the Senate’s backing, it will proceed to the office of the President for approval.
The legislation acknowledges digital assets brokers as legal entities that enable market participation and execute the exchange of fiat currency to virtual assets.
Brazilian Senator Irajá Abreu expects that the law would help control financial fraud perpetrated by bad actors in the crypto space.
Senator Abreu proposed the draft in 2019, hoping that it would pave the way for mainstream adoption of cryptocurrencies.
Brazil is poised to be the largest economy in Latin America to regulate crypto if the bill turns to law. El Salvador is another country in the region that has been pushing to have its jurisdiction fully adopt BTC.
The cryptocurrency craze that saw bitcoin adopted as a legal tender in El Salvador reportedly led to a 30% jump in the tourism sector.