During a plenary session, Brazil's Senate approved a bill on cryptocurrency, which would set the foundation for official regulation of cryptocurrency in the world's ninth largest economy.
Before it can be signed into law by President Jair Bolsonaro, the bill will need approval from the Chamber of Deputies. This will not be possible until later this year.
The bill, which was first introduced in 2015, allows Brazil's executive branch to make rules on virtual assets. The bill also needs to decide whether Brazil's central bank, the Securities and Exchange Commission, or a brand-new body will regulate the industry.
Observers predict that if the bill continues, the Brazilian economy will be the largest in Latin America, which will provide a regulatory framework for virtual assets. Although El Salvador made Bitcoin legal tender last year, and Cuba's cryptocurrency was regulated as a payment method, the large of Brazil's population and economy will place it among the most important countries to adopt regulation for cryptocurrency.
Brazilians raised $2.56 billion in cryptocurrency according to Chainalysis in 2021.
By offering a for importing ASIC mining rigs into Brazil, the country is also expanding its business.
