Brazil Legalizes Crypto Payments, 'Setting the Stage for Greater Bitcoin Adoption'

cryptonews.com:

The President of Brazil Jair Bolsonaro signed a bill making bitcoin (BTC) and other cryptoassets a legal and regulated payment option in the country - and this move, an expert says, "sets the stage for greater bitcoin adoption."

Bolsonaro signed a bill into law that established the country's official and complete framework for the trading and use of “virtual currencies” in Brazil, per the federal government’s official journal. The bill, previously approved by Congress, was signed on Wednesday and published on Thursday. 

It stated that,

"For the purposes of this Law, a digital representation of value that can be traded or transferred by electronic means and used to make payments or for investment purposes is considered a virtual asset."

Therefore, this does not include national and foreign currencies, electronic currencies, instruments that provide certain benefits and services (such as points and rewards from loyalty programs), and securities and financial assets.

Virtual asset providers (VASPs) are defined as entities that execute, on behalf of third parties, at least one of these services: exchange between virtual assets and national or foreign currency, or between one or more virtual assets; transfer of virtual assets; custody or administration of virtual assets or of instruments that enable control over these assets; and the participation in financial services and offering of services related to the offer by an issuer or the sale of virtual assets.

The document added that,

"Virtual asset service providers may only operate in the country with prior authorization from a federal public administration body or entity." 

Brazil’s residents will not be able to use cryptoassets as legal tender in the country.

When it comes to illegal