Brazilians bought more than $4 billion in cryptocurrencies this year as the country looks to regulate Bitcoin

• Brazilians have bought more than $4 billion in cryptocurrencies in 2021 so far, according to a report by the Central Bank of Brazil.
• The country’s legislature passed a bill to regulate Bitcoin and other cryptocurrencies in September.
• The bill does not make cryptocurrencies, Bitcoin or otherwise, ‘legal tender’ but does lay out a framework to make investing easier with safeguards against hackers, scammers, and money launderers.

Citizens of Brazil have bought more than $4 billion in cryptocurrencies in 2021 so far, according to the country’s central bank. Bruno Serra, the director of money policy at the Central Bank of Brazil, believes that the people’s interest in cryptocurrencies is unlikely to fade anytime soon and cryptocurrencies could hit a grand total of $8 billion by the end of the year.

Source: Data released by Central Bank of Brazil on Oct 15, 2021

The report comes hot on the footsteps of Brazil’s legislature giving the green stamp to a bill that will regulate cryptocurrencies in the country. While it doesn’t make Bitcoin ‘legal tender’, as was widely reported earlier this month, it does put in place a framework that will make it easier for locals to invest in cryptocurrencies while making it a tougher space for hackers and scammers.

The bill has been in development since 2015. After being approved by a special committee of the Chamber of Deputies, it is currently in the hands of the Chamber's Plenary. Once it is green lit by them, the bill will advance to the Senate to be discussed once more before finally going to the president for a final nod.

Is Brazil legalising Bitcoin?

Brazil has always been among the frontrunners when it comes to adoption of cryptocurrencies. But, unlike what was rumoured, the country will not make Bitcoin ‘legal tender’ in the country anytime soon.

Brazil’s Federal Deputy, Aero Riberio, told Radio Camara — a state run channel — that he sees Bitcoin being used to buy houses, cars, and even food. However, that was just his personal opinion, not a rewrite of the 2015 bill.

The current bill — draft 2.303/15 — requires all virtual assets services providers, like crypto exchanges, to register with the government. A new entity will be created for this purpose, to be decided at a later date. The proposed law will give companies operating in the sector 180 days to adapt to the new regulations once approved.

It also lays out that if anyone is caught using cryptocurrencies for the purpose of money laundering, they can be sentenced to between four to to 16 years in prison in addition to a fine.

However, as of right now, cryptocurrencies — Bitcoin or otherwise — are not regulated within the country and have been discouraged as means of conducting commercial activity.

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