President Jair Bolsonaro approved Law No. 14,478 on 21 December 2022, which provides a regulatory framework for trading and using cryptocurrency in Brazil.
The new law, which comes into effect in June 2023, creates a crime of fraud using virtual assets, securities or financial assets. The penalty is 4 to 8 years imprisonment plus a fine.
The law also creates a licensing regime for virtual asset service providers, including exchanges and trading intermediaries.