The Brazilian Senate plenary session Tuesday night approved a bill regulating cryptocurrency transactions.
The bill, introduced by Senator Flavio Arns, must also be approved by the Brazilian Chamber of Deputies. If the bill is approved, the executive branch has the right to veto it.
The text of the document explains that “virtual service providers” will be held responsible in the same way as other financial institutions for crimes against the Brazilian financial system.
If approved, the bill would allow the Brazilian Securities and Exchange Commission to control the cryptocurrency market, except for initial coin offerings (ICOs). In turn, the law determines that the Brazilian executive branch will appoint an agency to oversee the crypto sector.
The bill also stipulates that offenses committed using virtual assets will be punishable by two to six years in prison.
The original text proposed a penalty of four to eight years, but it was reduced at the request of Senate President Rodrigo Pacheco.