Brazilian lawmakers are contemplating a proposal to safeguard cryptocurrencies from potential seizure by creditors. Deputy Carlos Bezerra is the bill’s author, aiming to afford cryptocurrency holders the same level of protection as personal savings, which are immune from confiscation.
Currently, this document is under discussion within the Committee on the Constitution, Justice, and Citizenship in Brazil’s Chamber of Deputies. Notably, this committee is a component of the National Congress.
Additionally, the initiative is part of a larger regulatory framework for cryptocurrencies in Brazil. This framework was established in June 2023 to oversee the use of digital assets in the country.
Brazilian Lawmakers Drive Cryptocurrency Surge
Brazil’s involvement in the cryptocurrency arena has grown significantly, marked by substantial adoption and a favorable regulatory climate. The country’s SEC has suggested alterations to categorize tokens as both digital assets and securities, subjecting them to regulatory oversight.
Support for cryptocurrencies in Brazil is further underscored by a study commissioned by Mastercard, revealing that 49% of the nation’s populace engaged in a cryptocurrency transaction within the past year, surpassing the global average of 41%.
Moreover, Brazil has legalized cryptocurrency as a legitimate payment option, creating an encouraging environment for the development of cryptocurrency projects.
The rapid expansion of the cryptocurrency sector in Latin America, including Brazil, can be attributed to several factors. A significant driving force is the substantial number of individuals in the region who lack access to traditional banking services.
As of early 2023, Brazil alone counted more than 30 million unbanked individuals, rendering cryptocurrencies an appealing alternative for conducting financial transactions.
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