Brazilian lawmakers are working to introduce stricter rules for crypto-related crimes through a series of new crypto money laundering penalties.
The latest regulatory changes are part of Bill 2303/15, which increases the size of fines from one third of money laundering to two thirds. The bill also provides for increasing the minimum prison sentence from three to four years and the maximum sentence from 10 years to 16 years and eight months, along with fines.
According to the announcement, the draft law will be discussed further by the institute’s general assembly.
Deputy Federal Minister Aureo Ribeiro stressed that the new bill will help the state protect Brazilians from cryptocurrency fraud and noted that more than 300,000 people in Rio de Janeiro are affected by “financial pyramid schemes with cryptocurrencies”.
“Because of the lack of regulation, people have nowhere to take pictures. In Brazil the market will rise and correct. There will be no more profiteers using technology to mislead millions of Brazilians, ”said Ribeiro.
Related: Brazilian stock exchange wants to fulfill wishes for digital real
Ribeiro is optimistic about other aspects of the bill that will regulate broader crypto activities such as trading, custody, fiat exchanges and payments. According to a report by Cointelegraph BrazilRibeiro said Bitcoin will be accepted as a form of payment in Brazil once the law goes into effect.
Brazil has seen some signs of increased development and adoption of cryptocurrencies lately. In August, the head of the Brazilian central bank, Roberto Campos Neto, called on the state to support the cryptocurrency market by redesigning local regulations. In June, the Brazilian stock exchange started trading another exchange-traded Bitcoin fund after several other crypto ETFs were listed earlier this year.