Brazilian lawmakers are working to enact stricter rules for cryptocurrency-related crimes, approving a new set of penalties for money laundering with crypto.
Brazil Brazil’s special committee of chambers of deputies has approved a bill that provides significantly harsher penalties for financial crimes using cryptocurrencies such as Bitcoin (BTC), according to an official announcement in September.
The latest regulatory amendments are part of Bill 2303/15, which increases the amount of fines from one-third of the money laundered to two-thirds. The bill proposes to increase the minimum prison term from three to four years and the maximum prison term from 10 years to 16 years and eight months, in addition to fines.
According to the announcement, the bill is the subject of further discussion in Chamber Plenary.
Federal Deputy Orio Ribeiro stressed that the new bill would help protect Brazilians from crypto scam schemes, noting that more than 300,000 people in Rio de Janeiro were affected by the “financial pyramid scheme with cryptocurrency”.
“Because of the lack of control, people have nowhere to go. The market in Brazil will move forward and adjust. Using technology to deceive millions of Brazilians will no longer be profitable, ”Ribeiro said.
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Ribeiro was optimistic about other aspects of the bill, which governs larger cryptocurrency activities such as trading, custody, fiat exchanges and payments. According to a report by Cointelegraph Brazil, Ribeiro said that if the bill is passed into law, Bitcoin will be recognized as a payment in Brazil.
Brazil has recently seen some signs of the development and adoption of cryptocurrencies. In August, the head of Brazil’s central bank, Roberto Campos Neto, called on the state to embrace the crypto market by redesigning local regulations. In June, the Brazil Stock Exchange began trading another bitcoin exchange-traded fund earlier this year, following a previous listing of a few more crypto ETFs.