Brazilian Senate Committee Preliminary Approved Proposal Establish Ground Rules for Crypto

TokenInsight news, Brazilian Senate Committee preliminary approved proposal establish ground rules for crypto. The senate’s economic affairs committee unanimously approved the text on Tuesday. The bill now goes to a vote on the senate floor, followed by the lower house if approved, before President Jair Bolsonaro can consider signing it into law. The text starts from ground-zero by defining virtual assets and classifying their service providers. Under the proposal, the federal government decides which body will be responsible for regulating business with cryptocurrencies. According to the bill, virtual asset service providers must prevent money laundering and concealment of assets, while combating criminal organizations, the financing of terrorism and the proliferation of weapons of mass destruction. The text provides for imprisonment and fines for violations. If the bill is approved, Brazil will become the biggest Latin American country to regulate cryptocurrencies, reducing the potential for money laundering as well as risks for investors.