Over the years, there have been several bills to regulate cryptocurrency in Brazil. In 2014, there was an official communication regarding the digital currencies and Central Bank stated that the digital currencies were considered illegal in Brazil. Three years later, the question about the digital currencies was again raised and the agencies raised several bills regarding the regulation of the digital currencies. People in Brazil have engaged in crypto trading than trading with the traditional currencies and due to that, the Brazilian senate committee of economic affairs has agreed that there is a need to regulate the crypto.
Virtual currencies have existed without falling under any law. However, it has always been legal to buy or even sell crypto across the country. About five percent of the population in the country own crypto and it is used to diversify wealth by the investors. Business innovations always come ahead of regulation and this has also been the case with crypto. Brazil has registered a huge number of crypto imports and anticipates registering a higher number as years go by, the country has resulted in passing a bill that will regulate cryptocurrencies to make them safe from being hacked by frauds and also safeguard the investors from the scammers.
Regulating crypto in Brazil will help in curbing crimes that come along with the use of digital currencies as well as attracting more people to adopt the use of crypto. There is no doubt that people who have always been scared of adopting crypto will feel safe to adopt crypto because it will now be government regulated and they will feel that the currency is safe for use. With government involvement in regulating crypto then the criminal activities will go down because the frauds will fear being tracked by anti-money laundering systems that can monitor any kind of illegal use of digital currencies hence fearing the punishments that are involved including fines or even imprisonment.
Many countries legalize the use of crypto but do not regulate them. Just like the other currencies, digital currencies need to be regulated to prevent manipulation of the prices that affect the investors and to make the investors informed of technology-associated risks to help them make informed decisions. The path taken by the Brazilian government should be followed by all other countries that feel that digital currencies are the way to go and by so doing, the adoption of digital currencies will increase and more innovations will accrue to make transactions using the digital currencies safer easier and efficient.
In Brazil, cryptocurrency is more valued than fiat currencies. A greater percentage of the transactions that are conducted in the country use digital currencies more. Expecting more transactions in a similar form, the senate committee is working on setting aside rules that are to be followed in crypto trading to make the crypto industry safer.
