Brazil is reinvigorating the cryptocurrency regulatory debate thanks to the FTX debacle

Cryptocurrency industry boosters in Brazil are calling on federal lawmakers to reinvigorate discussion and approval of a bill to regulate the cryptocurrency market, following the bankruptcy of the world’s second-largest crypto exchange by transaction volume.

The sudden collapse of the Sam Bankman-Fried project has raised major concerns about the management and trading of unregulated digital currencies to legislators, governments, and merchants around the world, including Brazil.

The good side of the FTX disaster

said Roberto Dagnoni, CEO of 2TM, the parent company of Mercado Bitcoin Reuters that the law remained “sort of dormant” during the Brazilian electoral process that culminated in the victory of leftist Luiz Inacio Lula da Silva.

But keep in mind that now the legal initiative should be on the agenda for discussion in Congress.

"If there is a good side (to the FTX disaster), it would be that it gets the law prioritized," Dagnoni said Tuesday. He stressed that "The rules that currently exist have not been applicable to some players, so they can do whatever you want ... This (law) would change a lot."

Last May, the Senate passed A Cryptocurrency bill whose approval is still pending in Parliament. The said legal instrument sets fines and prison sentences for crypto companies that violate the law.

Similarly, cryptocurrency trading platforms must have physical headquarters in the country and provide information to the authorities in cases of suspected crimes such as money laundering, fraud, etc. on a mandatory basis.

If the current bill is approved, Brazil could become one of the largest regulated cryptocurrency markets in the world. In recent years, the adoption and trade in digital assets has not stopped growing, as evidenced by official report for the third quarter.

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