CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Does Brazil’s crypto bill make it the new El Salvador?

By Darius McQuaid

Edited by Charlie Mellor

12:43, 23 December 2022

A boy wearing a Brazilian jersey is seen walking past a wall painted with the Brazilian flag
Brazil’s new crypto regulation bill comes after El Salvador made bitcoin (BTC) legal tender In September 2021 – Photo: Getty Images

The president of Brazil, Jair Messias Bolsonaro, has signed a crypto regulation bill into law, just days before he leaves office.

Bolsonaro signed the bill after it passed through Brazil’s Senate and Chamber of Deputies. It will likely take effect in June 2023.

The law will establish a crime of fraud involving virtual assets, which can result in between four and six years in jail and a fine.

In addition, crypto firms will have to register in the country and then be allowed to establish physical offices. This will include businesses that offer crypto financing services or crypto exchanges.

The new law also creates a “virtual service provider” licence, which crypto companies will have to apply for.

BTC to USD 

DOGE/USD

0.19 Price
-1.080% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0012872

ETH/USD

2,902.20 Price
+0.110% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

SOL/USD

198.54 Price
+0.480% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 2.2651

XRP/USD

0.55 Price
-2.160% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

The Brazilian Securities and Exchange Commission

Under the law, cryptos that are considered securities will fall under the regulatory umbrella of Brazil’s Securities and Exchange Commission.

However, Bolsonaro did not say which federal agency would be in charge of supervising cryptocurrencies that are not deemed securities.  

What is your sentiment on BTC/USD?

76049.50
Bullish
or
Bearish
Vote to see Traders sentiment!

Is Brazil the next El Salvador?

In September 2021, El Salvador made bitcoin (BTC) legal tender in the country. In Brazil, the new bill does not allow for BTC to be used as legal tender in the country, however, it will place certain cryptos under a definition of legal payments.  

Bolsonaro will spend his last day in the office of Brazil’s president on 31 December, after which Luiz Inácio Lula da Silva will take over as president from 1 January 2023.

Markets in this article

BTC/USD
Bitcoin / USD
76049.50 USD
39.4 +0.050%

Related topics

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading