Brazil’s President approves the bill to regulate crypto assets

A bill to regulate crypto assets has been approved by the President of Brazil, Jair Bolsonaro, after it was passed by the country’s Chamber of Deputies and the Senate, according to a report by Coindesk. The companies will have to comply with the provisions of the law within 180 days, the report added. https://twitter.com/ToonSwapFinance/status/1607013425976066048 Why it matters: It is a significant development because Brazil is one of the biggest economies in the world and the biggest in South America. A stamp of approval from a country like Brazil goes a long way in offering legitimacy to the beleaguered space which has seen a steady erosion of trust in 2022. The law can also prove to be useful in offering other countries, including India, a blueprint on how to approach crypto regulation. What else do we know about the law: The bill puts in place a licensing framework for virtual asset service providers such as exchanges, CoinTelegraph reported. It added that the law has a provision to set a penalty for fraud involving virtual assets which carries a prison term of four to six years besides a fine. The law clarifies that Brazil’s residents cannot use Bitcoin as legal tender in the country, CoinTelegraph explained, adding that the law includes other assets under the definition of legal payment methods. There is no announcement on the agency which will be designated as the regulator but virtual assets considered securities will be governed by Brazil’s Securities and Exchange Commission. It is being suggested that the…