On May 30 in Brazil, the president of the Chamber of Deputies requested that the body form a commission that will determine if the country should regulate digital currencies.
The Chamber of Deputies is the lower house of the country's federal legislature, which is called the National Congress of Brazil. It consists of more than 500 representatives who are elected proportionally and who serve 4-year terms. Part of their responsibilities is to enact legislation in such areas as education, health, housing and transportation.
Deputy Rodrigo Maia, who is currently the president of the Chamber of Deputies, decreed the establishment of the commission, which will review and determine the fate of a bill called 2303/2015. The bill proposes to regulate both Bitcoin and so-called alternative digital currencies.
According to the decree, the newly created commission will consist of 34 deputies, as required by the country's House Rules of Procedure.
The Brazilian government has been actively engaging with the local cryptocurrency industry. Just this week, Fernando Furlan, who is the president of the Brazilian Association of Crypto and Blockchain, held a meeting in which not only did industry leaders participate but also representatives of the country's Attorney General's office, the Central Bank of Brazil, the Brazilian Internal Revenue Service and the Financial Activities Control Council.
During the meeting, attendees discussed the progress of the cryptocurrency and blockchain industries in the country. They also discussed how rules pertaining to the Financial Action Task Force on cryptocurrencies would be applied in the country. This month, the rules will be officially unveiled at a meeting between G20 finance ministers in Japan. Reportedly, all companies in these nations will have to adopt the new rules by 2021.
Recently, the Brazilian Internal Revenue Service implemented new rules concerning the taxation of digital currencies. According to these new rules, individual and entities must report to the government any cryptocurrency transaction whose value exceeds 30,000 reals, which is a little more than $7,500. Such reports must be made on a monthly basis, and they must include detailed information about the transactions, such as where they took place and who was involved.