The proposal was submitted to the Brazilian parliament by Federal Deputy Paulo Martins on Friday. It’s an addition to an existing law, which would allow cryptocurrency as a mode of payment. It would also act as a shield for those engaged in crypto to protect their private keys from being seized by courts.
It does not guarantee that Bitcoin or any crypto would be a legal tender in the country. However, it would instead make crypto a legally perceived financial instrument for investments and other purposes.
An interpretation of the amendment says that cryptocurrencies like Bitcoin (BTC) or Ether (ETH) could be used to pay for goods and services across the nation . It could likewise be utilized to pay outstanding debts “in the event of offering or forced constriction of crypto assets.”
The proposal also gives some regulatory powers to the courts, which are new and restrictive. The court can, for example, seize or freeze crypto exchange accounts.
“If the debtor’s assets are not located, the creditor may request the competent court to issue an ex officio, by electronic means, to the intermediaries involved in operations with crypto-assets, so that assets corresponding to the amount executed are blocked.”
The courts can force intermediaries like crypto exchanges to seize and freeze the assets of the accused. The amendments proposed in the Chamber of Deputies are still in the initial phase of discussion. This implies that it could require quite a long while before the additions are passed by the Senate and signed into law by the president. The fast-changing crypto scene could change drastically by the time the amendments are passed.