In Brazil, the Congress passed a law legalizing bitcoin and ethereum

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In Brazil, the Congress passed a law legalizing bitcoin and ethereum

The Brazilian Congress has approved a bill that will regulate cryptocurrency use as a means of payment throughout the country, which could have an impact on the adoption of digital currency throughout the region. By December 31, 2022, the law will be presented to the president for signature, allowing the state to gain the most insight into cryptocurrency.

It will also allow banks to offer crypto-related services.

A big step for Brazil

It is anticipated that crypto exchanges will be required to obtain licenses to operate if the bill is approved by the president. Fraud and money laundering are clearly defined by law in terms of the conditions that must be met.

Therefore, banks may soon be able to offer crypto-payment services, similar to how consumers use credit cards or other similar services to purchase and sell ordinary goods today. This state also requires active crypto service providers to establish physical offices.

As one of the most critical aspects of regulation, service providers are required to separate their funds from their clients' funds in order to avoid a similar situation to that of FTX.

The country with the most crypto ETFs in Latin America

This is a significant step for Brazil, especially since the crypto debate has been raging for seven years.

However, this does not mean that Bitcoin will become a legal means of payment as was the case in El Salvador last year. Based on the latest data from Chainalysis, which conducts research on the global adoption of cryptocurrencies, Brazil currently ranks seventh in terms of active users.

It was reported recently by this company that Brazilians spent nearly $143 billion on cryptocurrencies between June 2021 and June 2022, making them South America's largest cryptocurrency investors. The regulation of cryptocurrencies in Brazil and the adoption of cryptocurrencies by investors have made significant progress.

Currently, it has the greatest number of crypto ETFs in Latin America, and most major banks and brokers in the country offer some kind of exposure to cryptocurrency investments, or similar services, such as custody of crypto assets.