It still needs the approval of the executive branch to enact the law of the Deputies of Brazil.
As El Salvador did last year, Brazil has not made Bitcoin legal tender, but it has legalized crypto payments.
It was recently passed by the Brazilian Chamber of Deputies that cryptocurrencies can be used as payment methods within the country.
Even though it marks a significant step forward in Brazil for crypto, the enactment will still require the signature of Brazil’s president.
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Upon the passage of the bill, cryptocurrency will no longer be legal tender in the country. Digital currencies and air mileage programs, however, will be included under the definition of payment methods supervised by the central bank under the new law.
The law will be referred to as legislation depending on which office the executive branch will oversee after passing the bill. It is still to be determined whether securities tokens will be regulated by the Brazilian Securities and Exchange Commission (CVM).
Further, third-party managers and custodians may use crypto as a payment method. To avoid another incident like the FTX collapse, It is required that exchanges distinguish between user funds and those belonging to companies under the law.
In June, the Brazilian government proposed a similar proposal to permit crypto-based payments and protect private keys. Crypto assets should be made exchangeable and accessible for goods, services, or acquisitions.
Moreover, even though the collapse of FTX has affected many sectors in the crypto world, Brazilians will not be negatively affected by the collapse, said Thiago César, the CEO of Transfer Group, which is closely tied to the Brazilian crypto ecosystem.
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