Brazil passes law to legalize crypto as payment method

The law has been approved by Brazil's Chamber of Deputies but still requires executive approval to be enacted.

Although Brazil has not made Bitcoin (BTC) legal tender like El Salvador did last year, the South American nation has passed a law that legalizes crypto payments nationwide.

Brazil's Chamber of Deputies, a federal legislative body, has passed a regulatory framework that legalizes the use of cryptocurrencies as a means of payment in the country. While this makes significant progress for crypto in Brazil, the law still requires the signature of the President of Brazil for it to be signed into law.

Passing the bill does not make cryptocurrencies legal tender in the country. However, the bill will include digital currencies and airline mileage programs in the definition of payment methods that are under the supervision of the country's central bank.

After being enacted, the executive branch of government must decide which office will be responsible for oversight. Nevertheless, the tokens that will be considered securities will remain under the jurisdiction of the Brazilian Securities and Exchange Commission (CVM).

In addition to designating crypto as a method of payment, the law allows for the creation of licenses for crypto exchanges and for the custody and management of crypto by third parties. In addition to this, the law will require exchanges to make a clear distinction between company funds and user funds, to avoid another incident like the collapse of FTX.

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In June, a similar proposal was made to allow Br...