Share this article
Brazilian Congress to Consider Bill Regulating Crypto Exchanges
The legislation would require companies to maintain closer records of their transactions and customers and create more severe penalties for crypto-related crimes.
Updated May 11, 2023, 5:11 p.m. Published Oct 5, 2021, 11:53 p.m.
Make us preferred on Google
Brazil’s congress will discuss a bill that regulates companies operating in the cryptocurrency sector and increases penalties for crypto pyramid schemes and other illegal activities.
A special commission of the Brazilian House of Representatives already approved the bill presented on Sept. 29. If approved by the plenary, the legislation, which was introduced by federal deputy Aureo Ribeiro, would force “virtual asset service providers to follow rules of communication of financial transactions, with identification of customers and recordkeeping,” according to a Portuguese-language text published on the Brazil congressional website.
STORY CONTINUES BELOW
The bill would also increase the penalty for money laundering crimes using virtual currencies, including bitcoin.
Currently, the penalty for money laundering in Brazil consists of imprisonment for three to 10 years and a fine, according to the chamber’s website. If the bill passes, penalties for crypto-related fraud would be four to over 16 years imprisonment, plus a fine.
The proposed law would give companies operating in the sector 180 days to adapt to the new regulations.
The bill comes as more Brazilians are investing in cryptocurrencies and awareness of the sector has widened. João Manoel Pinho de Mello, director of the Central Bank of Brazil (BCB), recently said that a significant migration from paper currency to digital means of payment will take place in the next few years, and BCB President Roberto Campos Neto has said Brazil could be ready for a digital currency in 2022.
In July, Mercado Bitcoin, the largest crypto exchange in Brazil, raised $200 million in a Series B funding round from the SoftBank Latin America Fund and became the first Brazilian crypto unicorn after it got a $2.1 billion valuation.
Ribeiro’s bill covers a wide range of companies that provide crypto-related services such as exchange and custody.
According to the bill, “only institutions authorized to operate by the Central Bank of Brazil may exclusively provide the service of virtual assets, or accumulate it with other activities.” That will occur within the framework of a regulation issued by an agency or entity chosen by the executive branch of the country, the website text added.
The House of Representatives announced that the proposal must be analyzed at a general session of the lower house but didn’t specify when that debate will take place.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Ukraine banned Polymarket and there’s no legal way for it to come back
Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access.
What to know:
- Ukraine has no legal framework for Web3 prediction markets, and current legislation provides no recognition for such platforms.
- Polymarket and similar platforms are considered unlicensed gambling operators, leading to blocked access.
- Legal changes are unlikely in the near future, as Parliamentary revisions to gambling definitions are extremely improbable during wartime, leaving prediction markets in a legal deadlock.
Top Stories
