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House meets to consider “Bitcoin Law” today (23). What is the future of cryptocurrencies in Brazil?

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House meets to consider “Bitcoin Law” today (23). What is the future of cryptocurrencies in Brazil?

The Plenary of the House of Representatives may analyze the bill that regulates cryptocurrencies in Brazil this Wednesday (23), around 2:00 pm.

In the session, the congressmen will discuss a substitute for the Bill 4.401/21 approved by the Senate, when regulation by a federal agency was foreseen.

Regulation Around the World

The measure is still very new on the market. Some G8 countries, for example, do not yet work with the possibility, and others have federal or even state laws.

In the United States, Democratic President Joe Biden has decreed that the federal Commissions on Commerce; Securities and Exchange; and Commodity Futures Trading will monitor the movements around this market.

However, the country has different rules in each state. In Texas, a law was passed in 2021 that defines cryptocurrencies as a legal representation of a digital value, including for exchange and store of value.

In Portugal, the issuing and trading of cryptos is not illegal; however, there is no regulatory agency in the country or in Europe.

But if we go a little further down the globe, we find a worse situation: in China, digital currencies have been banned. Even in 2021, the country banned the mining of cryptocurrencies.

What the experts say

After the FTX (FTT) liquidity crisis that drove the brokerage firm itself into bankruptcy and hit the entire cryptocurrency market this month, some experts believe that the future of the market lies through market regulation.

Cássio Krupinsk, BLOCKBR‘s CEO, believes that the market is taking two steps back now, so that in the future it can take six steps forward. He reinforces that the situation at the moment only points out that it is necessary to have a regulation of the transactions.

“It is very clear that the regulator needs to be part of this. When you don’t have a regulated market, you don’t know the ballast of the operations. It is clear that the operations need to have ballast and that if you invest in a token that represents an operation, it has to be backed in some way. I’m not saying with 100% guarantee because every investment has risk, but it needs to have ballast,” said the executive.

For him, the proof of this movement is in Ethereum (ETH), which has been proof-of-stake by the U.S. Securities and Exchange Commission, since the largest stockpile of the currency is in the country.

Questioned about the market’s improvement forecast, Cassio points out that it is difficult to present an expectation, since the movements are predictable. However, he believes that today’s negative moment is important for the future, as it brings maturity to regulatory issues.

“This brings maturity and I believe that the market, regulated to some extent in several countries, and with the applicability of digital assets in blockchain, solving operational problems, can recover. Then the value reserves start to make sense again in a long-term view. But I believe that 2023 will be a very interesting year. In my opinion, digital assets will start to recover from the second half of next year,” concluded Krupinsk.

Source: SpaceMoney

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