The Brazilian government has approved Bitcoin and other crypto assets as a payment method within its territory. This development came into existence after legislators in Brazil approved a comprehensive framework for cryptocurrencies.
The framework will help to regulate the trading and use of digital assets in Brazil. According to the regulatory framework:
The government now recognizes virtual currencies as a digital representation of value. As a result, those assets can function as a means of payment. Digital currencies can also serve as an investment tool in Brazil.
At the time of writing, the new crypto regulatory framework remains a bill approved by lawmakers in that South American nation. For it to become law, the bill must be signed by Brazil's president.
However, the passage of this bill does not mean that cryptocurrencies are now legal tender in Brazil. Currently, no laws assign digital assets as legal tender in Brazil.
Besides signing the bill into law, the executive branch (the president and its ministers) will select a body to regulate the crypto markets in Brazil. There are strong indications that oversight of the industry will be performed by the country’s central bank.
However, tokens classified as securities will fall under the jurisdiction of The Securities and Exchange Commission of Brazil (CVM). The CVM operations are similar to that of the Securities and Exchange Commission in the US.
As a nation, Brazil has shown continuity in terms of creating an enabling environment for the crypto industry.
Currently, this nation has the most cryptocurrency ETFs in Latin America. Additionally, numerous Brazilian financial institutions like banks or brokers offer users some form of crypto investments. Such services take the form of custody or token offerings.
