Brazil Legalizes Crypto Payments!

Cryptocurrencies have been around for a decade now, but their usage is still limited to specific markets. The United States and Japan are two examples of countries where cryptocurrencies are not yet widely accepted. However, developing economies like Brazil have taken the path toward crypto adoption by approving new crypto law.

Brazil's chamber of disputes, a federal legislative body legalized Crypto Payments for goods and services within the country. President is yet to sign the bill Bolsonaro which is just a formality to make it official. Bitcoin or any other crypto is still not legal tender. They will act as supporting currencies within the local economy while the central bank is dealing with inflation.

• The ruling says that individuals and businesses are allowed to use cryptocurrency as a method of payment as long as both parties consent, and the transaction is fulfilled within the same business day. Just like any other transaction in Brazil, you will have to pay taxes on crypto payments.

• The executive arm of the government will choose which office will be in charge of its oversight when it is enacted into law. The Brazilian Securities and Exchange Commission will continue to have control over tokens that are deemed securities (CVM).

• Exchanges will have to make a clear distinction between company and user funds. Businesses that provide custody and management services for cryptocurrencies will apply for licenses to work within the country. As per local media outlets, the companies have 180 days to follow all the rules and compliances.

After the FTX downfall, regulators all over the world are going strict with their approach. The last aspect of the law must have been formed to avoid similar episodes from happening again.

Where Does Brazil Stand In The Crypto Landscape?

The passing of this law will definitely boost the adoption of various cryptocurrencies within the country. All major banks already provide services related to digital assets and tokens. It is one of the top 5 fastest Latin American adopters of crypto in the world making it a hotbed of innovation. It seems like Brazilians are taking charge of their financial future even after facing years of economic challenges.

Developing countries might not bring huge TVL, but they would definitely bring billions of potential users from diverse backgrounds & skill sets in crypto. What do you guys think? Comment below!

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