“None Can Hide What They Have with Them in Bitcoin”, Says Bank of Brazil’s Director

Director of the Central Bank of Brazil, Mauricio Moura, was of the view that no one in Brazil would be able to hide their transactions done on the basis of Bitcoin. Very soon any and all Bitcoin transactions would be identified by the Brazilian Government without any exception. He made such remarks when he was addressing a gathering in a conference.

Central Bank of Brazil’s director, Mauricio Moura, informed that in Brazil soon there is going to be a law with regard to crypto transactions. The law, when implemented, wouldn’t allow anyone to carry out their Bitcoin transactions without notice to the Brazilian Government.

While the law is going to be approved and implemented soon, meanwhile, the Government is determining how it can achieve the desired objective. Currently, the Central Bank of Brazil is exploring the possibilities how the law can be implemented so as to identify each and every Bitcoin transaction.

He commented that currently he is not in a position to reveal too much about the objective. However, one thing is for sure that their names will be known who are engaged in operating cryptocurrencies in the country. No one would be able to enjoy anonymity very soon.

Under the prevailing situation in Brazil any exchange or any entity involved in crypto is obligated to report their activities to the Brazilian regulator. If any of their customers conduct Bitcoin or other crypto transactions, persons’ names and amount of funds transferred, are required to be reported.

However, the regulator has noticed that a few of crypto companies are deliberately not complying with the reporting requirements. However, an enforcement action from the regulator would achieve the objective. For this purpose, the essential role will be played by the Central Bank of Brazil, said Moura.

For the time being, Brazil is planning to introduce a comprehensive crypto regulatory framework. One of the major contributor for finalizing the plan is the country’s central bank. In the month of June, the Brazilian Parliament was given a crypto law proposal, which is still pending approval.

However, the proposal provides for a deadline by which the comprehensive crypto regulatory framework will need to be provided. The deadline given is of 6 months and upon its completion, the regulator would be able to supervise and identify crypto transactions. Furthermore, the national tax collecting authority will also be empowered under the law to impose crypto tax.

Separately, a commission was constituted within the Chamber of Duties. This commission has been assigned the task to focus on the upcoming crypto regulation.

Brazil is however still in the process of finding the way forward for introducing the regulations. In the meanwhile, Brazil’s virtual asset industry is growing continuously and very rapidly. Even companies such as Visa Inc. are expanding its crypto payment solutions in Brazil.