Brazilian President Jair Bolsona has signed the cryptocurrency bill. Bank of Ghana will begin developing a framework for the regulation of digital assets containing cryptocurrencies. Keep reading us for the details of the news.
Brazilian President signs cryptocurrency law
Brazilian President Jair Bolsonaro on Thursday approved the bill on cryptocurrencies. The bill had previously been passed by the House of Representatives and the Senate recently. The new law provides for criminal penalties for a fraud offense involving virtual assets. In this context, the law includes four to six years’ imprisonment and a fine. It also issues a license for digital asset companies, including exchanges and brokerage firms. Accordingly, it creates a ‘virtual service provider’ license.
Digital assets, which are considered securities according to the new regulations, will be under the supervision of the Brazilian Securities and Exchange Commission (CVM). Those who do not fall into this category will be audited by another body that has not yet been established. After Thursday’s approval, companies will have 180 days to comply with the new rules.
Bank of Ghana plans framework for crypto regulations
Bank of Ghana will begin developing a framework for the regulation of digital assets containing cryptocurrencies. The announcement was made by the Bank’s current president, Dr. Ernest Addison did. The Ghanaian government’s decision shows that Ghanaians took it in response to the popularity and use of digital assets. As you follow on Kriptokoin.com, the first African Bitcoin Conference was held in Ghana last month. The conference attracted the attention of many global crypto figures such as Jack Dorsey and Jack Mallers.
The president explained that the bank started with a study on ‘cryptocurrency and related technologies and models such as Blockchain, decentralized finance (DeFi) and stablecoins’. He also said that they are paying attention to global practices, regulatory frameworks and standards regarding digital assets from institutions such as the Financial Action Taskforce, Financial Stability Board and Basel Committee on Banking Supervision.
“No need to ban cryptocurrencies”
Africa has become an important part of the global crypto ecosystem. A report from Chainalysis shows that by mid-2021, crypto transactions across the continent have reached $20 billion. Nigeria, Morocco and Kenya are among the top twenty countries in the Global Crypto Adoption Index published by Chainalysis.
Speaking about Ghana and crypto, Ray Youssef, CEO of Paxful, which serves the African market with crypto services, said that between 2020 and 2022, the transaction volume of Ghanaians on the Paxful platform increased by 400%. It shows the huge crypto potential in the country. During the announcement, the President noted that despite the volatility and risk associated with cryptocurrencies, it is not possible to outright ban the use of cryptocurrencies due to their decentralized and borderless nature. Therefore, he underlined the need for regulations.
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