- Legislative body in Brazil imposed a higher penalty for money laundering crimes that use Crypto.
- The penalty will increase from three to ten years to imprisonment from four years to 16 years and eight months, in addition to the fine.
- Report tabled in the house says more than 300,000 people were harmed by a financial pyramid made with cryptocurrency.
Brazil approved unanimous approval of legislation that would increase the penalty from one to two third, for money laundering crimes that use virtual currencies. Currencies such as Bitcoin and other cryptocurrencies.
The report further added this matter interests many Brazilians involved in investments. We have many prisoners who used virtual currencies to trade with this new technology.
Bill creates the definition of virtual assets and deals with its regulation.
The statute defines a virtual asset as the digital representation of value that can be traded or transferred by electronic means and used to make payments or for investment purposes.
Although there are some exceptions, they are:
- National currency and foreign currencies
- Electronic money provided for in the legislation.
- Instruments that provide the holder with access to specified products or services or benefits such as loyalty program points and rewards
- Assets whose issuance, bookkeeping, trading or settlement is provided for by law or regulation, such as securities and financial assets.
Aureo Ribeiro Member of the Chamber of Deputies of Brazil stated that the report guarantees that Brazil becomes a granary for investors and does not let those who commit crimes go unpunished.
He further added, “The market will advance and adjust in Brazil. There will no longer be profiteers using technology to deceive millions of Brazilians”.
Most of the deputies believe that the regulation of virtual currencies will help increase revenue. They hope that this report will be used as an example in other countries.