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Salvadoran Group Files Lawsuits Against President Nayib Bukele on Lack of Transparency in Bitcoin Purchases

Salvadoran Group Files Lawsuits Against President Nayib Bukele on Lack of Transparency in Bitcoin PurchasesCristosal, a Salvadoran nonprofit human rights organization, has filed three lawsuits related to President Nayib Bukele’s management of public funds to purchase bitcoin. The processes are being run before several national and international bodies, and call for the government to offer information on these purchases. President Nayib Bukele Sued by Salvadoran Nonprofit Cristosal On Nov. […]

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Salvadoran President Nayib Bukele Takes Aim at Bitcoin Detractors, Says the Ones Who Are Afraid ‘Are the World’s Powerful Elites’

Salvadoran President Nayib Bukele Takes Aim at Bitcoin Detractors, Says the Ones Who Are Afraid ‘Are the World’s Powerful Elites’It’s been over a year since El Salvador codified bitcoin as legal tender in the Latin American country, and by popping the ‘orange pill,’ the country was propelled into the international spotlight. At the end of September, the 41-year-old Salvadoran president Nayib Bukele penned an opinion editorial that takes aim at the detractors who think […]

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Bitcoin-Embracing El Salvador President’s Re-Election Declaration Slammed

Bitcoin-Embracing El Salvador President’s Re-Election Declaration SlammedJust over a year after overseeing El Salvador’s adoption of bitcoin, the Central American country’s 41-year-old president, Nayib Bukele, recently declared his intention serve another five-year term. The announcement has been criticized by some who have been quick to remind Bukele that El Salvador’s constitution prohibits presidents from serving consecutive terms. Re-Election of Presidents a […]

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Report: The Central African Republic Requests Regional Central Bank’s Assistance in Crafting Crypto Regulations

Report: The Central African Republic Requests Regional Central Bank’s Assistance in Crafting Crypto RegulationsA new report has claimed the Central African Republic, which became the first country in Africa to make bitcoin legal tender, recently requested the regional central bank’s assistance in developing a cryptocurrency regulatory framework. The report also said the CAR had expressed its “commitment to the single currency and respect for the statutes of the […]

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Central African Republic Token Sale off to Slow Start — $1.26 Million Raised in Under 5 Days

Central African Republic Token Sale off to Slow Start — .26 Million Raised in Under 5 DaysThe Central African Republic’s token sale appeared to have gotten to a slow start after less than 13 million out of the 210 million Sango coins were sold since the commencement of the sale on July 25. The country has claimed its decision to adopt bitcoin has won praise from “other African countries exploring the […]

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Head of African Regional Central Bank Calls for Creation of Digital Currency

Head of African Regional Central Bank Calls for Creation of Digital CurrencyThe head of the Bank of Central African States (BCAS), Herve Ndoba, has told the regional central bank’s board that it must create a common digital currency which will be used by six countries belonging to the Central African Monetary Union (CAMU). Ndoba reportedly wants the BCAS to establish a common legal framework for regulating […]

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Report: IMF Says Central African Republic’s Bitcoin Adoption Poses Risks

Report: IMF Says Central African Republic’s Bitcoin Adoption Poses RisksThe International Money Fund (IMF) has added its voice to institutions and parties criticizing the Central African Republic (CAR)’s decision to adopt bitcoin. The IMF insists the adoption poses legal economic challenges not only to the country but to the region as well. CAR’s Bitcoin Adoption Has Financial and Legal Issues The IMF has reportedly […]

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Brazil’s Senate approves ‘Bitcoin law’ to regulate cryptocurrencies

It's a historic day for cryptocurrencies in Brazil, as the Senate has finally approved the country's first bill aimed at regulating the crypto market. The bill still needs to be approved in the Chamber of Deputies and then sanctioned by President Jair Bolsonaro.

Brazil’s Senate has passed the country's first bill governing cryptocurrencies in a plenary session, which will set the stage for the creation of a regulatory framework for the country’s crypto industry. 

The bill must be approved by the Chamber of Deputies and then signed off by President Jair Bolsonaro to become law in the country. This is expected to occur by the end of 2022, according to experts who spoke with Cointelegraph Brazil.

The session that approved the project was chaired by Senate President Rodrigo Pacheco who said:

"I want to congratulate the rapporteur of the project, Senator Irajá, for the approval, here in the Plenary of the Senate, for this important bill.”

Federal Deputy Aureo Ribeiro first proposed the bill in 2015.

The bill was then approved in the Senate following lengthy deliberation on April 26, combining Senator Ribeiro's bill with Senator Arns’s bill PL 3825/2019 for which Senator Irajá Abreu was rapporteur. 

During the session, the Senate confirmed that the country’s executive branch would be responsible for formulating rules for crypto-assets and could either create a new regulator or delegate its power to the Securities and Exchange Commission (CVM) or the Central Bank of Brazil (BC).

The session also saw several senators including the bill’s author, Senator Arns focusing discussion on appropriate penalties for crypto crimes, especially fraud.

According to Senator Arns, the penalties for this type of crime should be scaled according to the amount of fraud, money laundering, and other white-collar crimes committed. He said:

"The penalties must be proportionate to the amount of value affected by this type of crime. So whoever committed a crime of US $1 billion causing damage to thousands of people would have a greater penalty than the someone who affected less value.”

Senator Arns's proposal was backed by Senator Rose de Freitas, who called for greater punishments for crimes involving cryptocurrencies and said that the Brazilian market already moves more than $40 billion in Brazil.

Senators also discussed incentivizing crypto miners to open up shop in Brazil since there will be a complete tax exemption for the import of ASIC mining devices into the country.

Bernardo Schucman, senior vice president of the digital currencies division of the American mining company CleanSpark, pointed out that the cryptocurrency market needs specific regulation so that institutional investors who are averse to risk feel encouraged and protected by investing in crypto mining in South America’s largest country. He said

"Regulation is very welcome [and] the trend is for Brazil to follow the largest economies in the world and facilitate the mining of these coins on Brazilian soil.”

Related: Brazilian central bank president confirms CBDC pilot will launch in 2022

The bill does not appear to face many challenges in the Chamber of Deputies, where it must be approved in a plenary session before being sent to President Bolsinaro before becoming law.

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Tourism Minister of El Salvador Reiterates Effect Bitcoin Has Had on the Sector

Tourism Minister of El Salvador Reiterates Effect Bitcoin Has Had on the SectorMorena Valdez, the tourism minister of El Salvador, has spoken on the recovery the tourism sector of the country has reportedly experienced even after the Covid-19 pandemic. According to Valdez’s statements, tourism has greatly benefited from the introduction of bitcoin as legal tender in the country, and from the foreigners that come to the country […]

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El Salvador’s Tourism Rises 30% After Bitcoin Became Legal Tender

El Salvador’s Tourism Rises 30% After Bitcoin Became Legal TenderEl Salvador’s tourism has grown more than 30% after adopting bitcoin as legal tender, according to the country’s ministry of tourism. “Cryptocurrency multiplies the opportunities to do business with more partners anywhere in the world,” the Salvadoran government explained. El Salvador’s Economy Boosted by Bitcoin Law The Salvadoran government has outlined some economic benefits resulting […]

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