Brazil is now a step close to regulating cryptocurrencies after a Senate committee unanimously approved the measure after three years of lobbying.
BTC is up 1.54%, ETH up 2.51%, and XRP up 1.75%.
The Economic Affairs Committee approved the bill on February 22, boosting the possibility that the measure will be passed on the Senate floor. It provides guidelines regarding the provision of virtual asset services.
The bill will provide for the participation in financial services and provisions, and exchanges between virtual assets and fiat currencies, along with transfers and custody of digital assets.
It will categorize virtual assets as a “digital representation” of value that can be traded or transferred electronically, and used for payments or investment purposes.
Senator Irajá Abreu said the measure seeks to restrict practices including money laundering and tax evasion. It is seen to increase public adoption in the supermarket, commerce, and car dealerships.
Should it be passed into law, Brazil will become the biggest country in Latin America to regulate cryptocurrency.