Brazil’s President, Jair Bolsonaro has signed a bill legalizing the use of cryptocurrency as a means of payment in Brazil.
The bill, tagged ‘bill 14.478 as approved by Brazil’s Chamber of Deputies seeks to also introduce licensing for virtual asset service providers in the country.
It also provides rulings on fraud committed using digital assets.
Based on the law, offenders could get between four and six years in jail, in addition to a fine.
In a statement issued on Thursday, the government said that the law creates a “virtual service provider” license for digital asset firms, exchanges, and trading intermediaries.
The cryptocurrency law will take effect in 180 days.
The bill further states that Brazil’s residents will not be able to use cryptocurrencies like Bitcoin as legal tender in the country, as done by some countries.