Brazilian lawmakers have approved a set of new penalties for laundering money with cryptocurrency. As part of their efforts to create stricter regulations for cryptocurrency-related crimes.
According to an official announcement on Wednesday, Brazil’s Special Committee of the Chamber of Deputies has approved a bill. That significantly tightens penalties for financial crimes involving cryptocurrencies like Bitcoin (BTC).
The most recent regulatory changes included in bill 2303/15. Which raises the fines from one-third to two-thirds of the amount of laundered money. In addition to a fine, the bill proposes increasing minimum prison terms from three to four years. And increasing maximum prison terms from ten to sixteen years and eight months.
The bill discussed further by the Chamber’s Plenary, according to the announcement.
Federal Deputy Aureo Ribeiro emphasized that the new bill will assist the state in protecting Brazilians from crypto scams. Noting that “financial pyramid schemes with cryptocurrency” affected more than 300,000 people in Rio de Janeiro.
“With the lack of regulation, people have nowhere to turn. The market will advance and adjust in Brazil. There will no longer be profiteers using technology to deceive millions of Brazilians,” Ribeiro stated.
Other aspects of the bill, which regulates broader crypto operations such as trading, custody, fiat exchanges. And payments, piqued Ribeiro’s interest. According to a report, Ribeiro stated that once the bill is passed into law. Bitcoin will be accepted as payment in Brazil.
Recently, there have been some signs of increased crypto development and adoption in Brazil. The head of Brazil’s central bank, Roberto Campos Neto, called on the government to embrace the crypto market by reshaping local regulations in August. Following the listing of several other cryptocurrency exchange-traded funds (ETFs) earlier this year. The Brazil Stock Exchange launched trading of another Bitcoin ETF in June.