Brazil has approved the regulatory framework legalizing the use of cryptocurrencies as a means of payment in the country.
Brazil did not designate Bitcoin (BTC) as a legal tender, but took one of the priority steps. A law has been passed across the country legalizing cryptocurrencies as a means of payment. This provided regulatory support for the adoption of cryptocurrencies and the expansion of the ecosystem.
The Brazilian House of Representatives has approved a regulatory framework that legalizes the use of cryptocurrencies as legal tender. The document provides for the inclusion of cryptocurrencies in the definition of payment agreements, under the oversight of the country’s Central Bank. The law, which is currently ratified and requires only the signature of the President to enter into force, gives legal status to payments made in cryptocurrencies for goods and services, but not local currency status.
Once the law comes into force, it will be up to the executive branch of government (president and ministers) to determine the body or office responsible for overseeing the matter. Also, only tokens categorized as securities will remain under the jurisdiction of CVM, the Brazilian equivalent of the SEC.