Brazilian legislators have approved a set of new penalties for laundering money with cryptocurrencies as part of their efforts to create harsher restrictions for cryptocurrency-related offenses.

According to an official release on Wednesday and reported by CoinTelegraph, Brazil’s Special Committee of the Chamber of Deputies has passed a law that dramatically increases sanctions for securities fraud involving cryptocurrencies like Bitcoin.

The SCCD has passed legislation that drastically raises punishment for financial offenses using cryptocurrencies like Bitcoin, an official announcement on Sept. 29 disclosed.

Adding more teeth

Bill No. 2303/15, which raises the penalties from one-third to two-thirds of the amount of illegal money, is the most recent regulatory modification.

In addition to a fine, the measure proposes increasing minimum jail sentences from three to four years and increasing maximum prison terms from 10 to 16 years and eight months.

According to federal deputy Aureo Ribeiro, the proposed legislation will help the state protect Brazilians from cryptocurrency frauds, noting that “financial pyramid schemes with cryptocurrencies” affected roughly 300,000 people in Rio de Janeiro.

“People have nowhere to turn since there is no regulation. In Brazil, the market will develop and adapt. Profiteers will no longer use technology to mislead millions of Brazilians, according to Ribeiro.

Bitcoin adoption

Ribeiro supports the bill’s other provisions, which include bigger bitcoin firms like trading, custody, fiat exchanges, and payments. Bitcoin will be recognized as payment in the country once the bill is passed into law, Ribeiro said.

Recently, there have been some indicators of increased cryptocurrency innovation and use in Brazil. The president of Brazil’s central bank, Roberto Campos Neto, called on the government to adopt the cryptocurrency market by altering local legislation in August.

Following the launching of many other cryptocurrency exchange-traded funds (ETFs) earlier this year, the Brazil Stock Exchange commenced trading of another Bitcoin ETF in June.

Image courtesy of Cointelegraph News/YouTube

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