Brazil passes law to legalize crypto as a payment method

[CryptoPanda]

I saw the headline and thought we will be having another El Salvador experience in Brazil only to discover they didn’t make bitcoin a legal tender. I think the goal of the Brazil government is to regulate bitcoin and cryptocurrencies. And they are using the FTX scandal as an excuse to do so. I could be dead wrong or paranoid. What do you guys think about this development in Brazil? Is it good or bad for bitcoiners in Brazil?

Brazilian lawmakers have approved a complete regulatory framework for the trading and use of cryptocurrencies in the country.
Voted on Tuesday evening in Brasilia, the country’s capital, the new rules recognize bitcoin as a digital representation of value that can be used as a means of payment and as an investment asset in the South American nation.
The bill applies broadly to a sector which it calls “virtual assets,” and now only needs the President’s signature before it becomes law. It does not make bitcoin or any cryptocurrency a legal tender in the country.
The bill tasks the executive branch with selecting government bodies to oversee the market. The expectation is that the Central Bank of Brazil (BCB) will be in charge when bitcoin is used as payment, while the country’s securities and exchange commission (CVM) will be the watchdog when it is used as an investment asset. Both the BCB and the CVM, along with the federal tax authority (RFB), helped lawmakers craft the overhaul legislation.
Home to a vibrant cryptocurrency economy, Brazil has at times seen more citizens trade coins such as bitcoin than invest in the stock market. Now, the country seeks to set the stage for that to translate into more day-to-day usage in financial transactions.
But not all in the text is positive for the development of the market in the country. A big miss from Tuesday’s vote was the rejection of a clause that sought to cut some state and federal taxes on purchases of bitcoin mining machines. While the text was quite restrictive –– the benefit would only apply to operations using renewable energy sources –– it was apparently not enough to be approved.
Other provisions include the regulation of service providers such as exchanges, who will need to abide by specific rules to operate in Brazil. The bill seeks to regulate the establishment and operation of Bitcoin service providers in Brazil, defining such entities as those who provide cryptocurrency trading, transfer, custody, administration, or sale on behalf of a third party. Cryptocurrency service providers will only be able to operate in the country after explicit authorization by the federal government.
One rule sought to demand that such companies explicitly separate their patrimony from capital owned by customers –– for example, bitcoin the firm custodies for users. The clause sought to prevent events such as the recently seen with FTX, where user funds were commingled with the company’s funds, and help the recovery of user assets in the event of bankruptcy. It was rejected on Tuesday’s vote.
https://bitcoinmagazine.com/.amp/legal/brazil-approves-use-of-bitcoin-as-payment

https://www.nasdaq.com/articles/brazilian-president-signs-bill-regulating-use-of-bitcoin-as-payment

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[hd49728]

They accepted it as a payment method but not as a currency and not legal tender. Brazil is different than El Salvador where Bitcoin is legal tender.

What is legal tender and what is difference between being a legal tender or not legal tender?
In El Salvador, you can not reject if a buyer want to pay in Bitcoin. In Brazil, you can reject the buyer because it is not legal tender.

Brazil is a big nation in Latin America and they belong to G20 too so this adoption is very good for cryptocurrency in general.

Brazil enacts Bitcoin payments bill
Brazil passes law to legalize crypto as a payment method. You use this one as source of your discussion but it is about 1 month old.

[suzanne5223]

I saw the headline and thought we will be having another El Salvador experience in Brazil only to discover they didn’t make bitcoin a legal tender. I think the goal of the Brazil government is to regulate bitcoin and cryptocurrencies. And they are using the FTX scandal as an excuse to do so. I could be dead wrong or paranoid. What do you guys think about this development in Brazil? Is it good or bad for bitcoiners in Brazil?
[snip]
The bill applies broadly to a sector which it calls “virtual assets,” and now only needs the President’s signature before it becomes law. It does not make bitcoin or any cryptocurrency a legal tender in the country.

This was actually old news. I was planning to create a thread about the latest news before I see your post. The Brazilian lawmaker has passed the law and the President is what is needed to make it official.
The latest news now is that the Brazil's President has signed the bill into law this morning and it creates a thorough regulatory framework for the country's use and trading of bitcoin.

[rat03gopoh]

That is to reduce the functional disparity, if parliament doesn't pass these laws then the only option for crypto users is to accumulate them in investment portfolios. This would involve nothing but services such as FTX as storage to be trusted if the user isn't confident enough to deposit in a personal wallet.

[Artemis3]

This was actually old news. I was planning to create a thread about the latest news before I see your post. The Brazilian lawmaker has passed the law and the President is what is needed to make it official.
The latest news now is that the Brazil's President has signed the bill into law this morning and it creates a thorough regulatory framework for the country's use and trading of bitcoin.

More like he didn't vetoed so it passed.

[Welsh]

Regardless of the technicalities, it's nice to see a little bit of positive news floating around. Which is something that we've been lacking the last couple of months. I'm not saying it'll have an effect on the current price, as I imagine it won't. However, it's definitely nice to see this instead of the normal doom, and gloom that's become normal the last couple of months.

That is to reduce the functional disparity, if parliament doesn't pass these laws then the only option for crypto users is to accumulate them in investment portfolios. This would involve nothing but services such as FTX as storage to be trusted if the user isn't confident enough to deposit in a personal wallet.

Isn't that their only options anyway? Most users aren't prepared to learn how to safe guard their own Bitcoin, so they tend to trust the simplest, and most convenient option which is usually the exchanges. I don't think this news particularly changes anything about that?

[DdmrDdmr]

According to what I’ve been reading, the law will still need six months to come into force, with a large part of the focus being placed on regulating bitcoin related service providers that can operate in within the country. What we’ve still got to see is how these laws translate into specific regulations, and how these play out.

On the other hand, I haven’t been able to read anything yet on how this will impact customer-to-business (not B2B) type TXs. Although it should be something that both the business and the customer may use for their payments on a voluntarily basis (not being legal tender), for those business that do/will accept BTC et al as a payment method, and those customers willing to use it for their payments, there are no details yet on the specific regulation requirements that will need to be met by both parties. These details are what can make using bitcoin a seamless means of payment, or a burocratic pain in the ass (i.e with/without KYC, from what TX values onwards, report/no report of TXs to the country’s IRS equivalent and so forth).

See (GT): https://www-criptonoticias-com.translate.goog/regulacion/ley-bitcoin-brasil-entrara-vigencia-2023-sancionada-presidente/?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=es&_x_tr_pto=wapp

[Dunamisx]

Brazil had been on this for a while without having an good edge to hold unto and now that they show interest in cryptocurrency i hope their focus will be on bitcoin only before they got mishandled by the whole crypto coins even though they are still on the look for this law to be enacted for public use, their indecision is somehow flunctuating base on how to they can be able to achieve it regulations but i think now people can feely perform bitcoin transactions without any glitch and other crypto affiliates could get regulated under their capacity.

[Xxmodded]

Last update about Bitcoin become legal tender waiting from parliament approving but I don't find with new update how long it progress approved or reject with Bitcoin adopt as payment method in Brazil. Trough FTX collapse and give bad reputation for Bitcoin can use for legal tender seems not good moment waiting approval from Brazil parliament.

Not matter if Bitcoin can't adopted as legal payment tender in Brazil but still ability use it for investment assets or use it for trading, my country not legal and can't use Bitcoin as payment method but legalize for using Bitcoin as investment assets and have taxes regulation in our government about Bitcoin and all cryptocurrency transaction.

[The Cryptovator]

It makes no difference that Brazil did not adopt Bitcoin as quickly as El Salvador. At the very least, Bitcoin is legal there, and that is reason enough to use Bitcoin and thing that connects. They understand the value of Bitcoin and, like El Salvador, will eventually adapt to it. Changing the government's mind about accepting Bitcoin is a good sign. At least some good news in the presence of all the bullshit. My country has yet to recognize the value of Bitcoin, and I hope that one day I will be able to freely use Bitcoin here.

[Merit.s]

Bitcoin must not be adopted as a legal tender before it can be used,the most important thing is that bitcoin has been legalize in Brazil for transactions which is a plus to the economy. If most countries can imitate Brazil in accepting bitcoin for transactions, bitcoin will supersede fiat currency. I appreciate the president of Brazil for signing this into law immediately without a waste of time. Bitcoin should be the crptocurrency they should be using or else, some person may end up losing their investment,if they invested on alt coins. How to keep their bitcoin safe in their own wallet should be the next awareness Brazil government should give to the citizens,so that they don't keep their bitcoin in an exchange,to avoid regrets and blames.

[Antonas1]

First, actually, this thread is similar to Brazil Has Approved Bill Recognizing Bitcoin As a Payment Method. Why not put your though in there?

Next, it seems that the regulation still can be a trap for users into legal issues, so need to be seen in the next few months; let's check this:

The new law takes effect 180 days from the day it is signed, but does not declare Bitcoin or other cryptocurrencies as legal tender within the country.

[Woodie]

First it was Venezuela, then El Salvador (technically central American) now Brazil... Am just wondering why most South American countries are going crypto in the last couple of years, do they see Bitcoin for example as the answer to weakening local currencies or its genuine interest they have developed over the years, or it's the politics at play Either way, this is a win for the crypto ecosystem!

[kryptqnick]

If it's recognized officially as a means of payment, why isn't it like in El Salvador where Bitcoin is legal tender? Isn't legal tender the same as legal recognition as a means of payment? I understand the law is not as friendly as the legislation in El Salvador, but that's on other matters like mining taxes, right? So it's crypto-related business, but not Bitcoin's recognition and regulation specifically. To me, it seems like Brazil made a big positive step forward, and it's big news for Bitcoin adoption, especially considering that the population of Brazil is 216 million people, against 6.5 million in El Salvador.

[panganib999]

It is fine and dandy. Honestly I am happy they were this receptive with bitcoin and cryptocurrency in general but I am a bit scared of the implications that this may cause. For instance, we know Brazil is home to the most heinous of crimes there is, and I'm not talking about simple kidnapping and murder, AFAIK illegal black market trades of trafficked humans and organs are made here (correct me if I am wrong), so legalizing crypto utilization within their borders may just make the chase for these criminals extra hard. I do hope they made contingency plans for such instances, otherwise it would be as if they are turning a blind eye on these pressing issues.

[Leviathan.007]

I saw the headline and thought we will be having another El Salvador experience in Brazil only to discover they didn’t make bitcoin a legal tender. I think the goal of the Brazil government is to regulate bitcoin and cryptocurrencies.

I'm not sure about people in Brazil and how they would like to react after they saw bitcoin and cryptocurrencies are legal in their country.
Maybe there will be some people against this ruse because they believe bitcoin is not for their economic systems and this is mostly because they don't have enough knowledge about cryptocurrencies.
On the other hand, I think Brazil is just paying more attention to cryptocurrencies because they want to make it legal and milk tax from the investors.

[DaveF]

Any time any country makes commerce for it's people more available with more things it's good.
Am I going to to to Brazil now since I would be able to use BTC? No. Are there others that would. Obviously yes. And that is what matters as other countries see that someone else is getting a piece of the pie they are going to want to get it too. Then they start to accept crypto, and so on.


-Dave

[Kasabus]

They accepted it as a payment method but not as a currency and not legal tender. Brazil is different than El Salvador where Bitcoin is legal tender.

What is legal tender and what is difference between being a legal tender or not legal tender?
In El Salvador, you can not reject if a buyer want to pay in Bitcoin. In Brazil, you can reject the buyer because it is not legal tender.

Brazil is a big nation in Latin America and they belong to G20 too so this adoption is very good for cryptocurrency in general.

Brazil enacts Bitcoin payments bill
Brazil passes law to legalize crypto as a payment method. You use this one as source of your discussion but it is about 1 month old.

However, this is still considered another big achievement for bitcoin, adopting bitcoin as a legal currency and a payment method. At least we can expect that bitcoin will be known already in Brazil and maybe years from now, having it as a legal tender might also be possible if the government will allow it. But as long as bitcoin is now already legally adopted and accepted, I think that’s something that the bitcoin community should be thankful for.

[Bitstar_coin]

Well, it is a start and an opportunity for those who want to pay in btc to have the option to pay. This process is way better than that of El-Salvador imo, the difference between the 2 is, Brazilians will have the option to pay in btc, get used to the process and even have the time to access and analyze the process, unlike El-Salvador who just went straight to adoption without given the citizens the opportunity to be acquainted and validate its importance.

[el kaka22]

It's not a shock that not everywhere will be like El Salvador, plus Brazil is a huge nation with tons of illegal activities famously known, so much so that people who commit crimes in the USA could run to Brazil with the knowledge that they won't be sent back, which creates a bit of a trouble and tension between the nations but maybe it is designed that way purposely, who knows?

All in all I have to say that it's not going to be that much of a big deal when the time comes and Brazil makes it a legal tender as well, but as long as they make it allowed, that means it's not going to actually be bothering the bitcoin world, it is not for anything against us, it's probably against the big players, and protecting us.