22 Dec 2014
Brazilian senate report: Bitcoin isn't ready for regulation – CoinDesk
FXStreet (Barcelona) - CoinDesk Analysts share the Brazilian senate’s report which examines the need for regulating cryptocurrencies, further noting that the document suggests Bitcoin should not be regulated at the moment.
Key Quotes
“A new study commissioned for the Federal Senate of Brazil has sought to examine how the spread of bitcoin and other digital currencies could impact Brazil's economy, and whether formal regulation is necessary for the domestic industry.”
“Authored by Cesar Rodrigues van der Laan, a researcher at Banco Central do Brasil, the 18-page document concludes that Brazil should not immediately regulate bitcoin, arguing that there is not enough activity in local markets to warrant such rulemaking.”
“The paper goes on to highlight the varied response regulators have taken to bitcoin around the world, citing the stance taken by Russia, which has taken active steps to ban bitcoin, and the US, where state regulators are seeking to establish a framework for the industry.”
“Notably, the paper advocates that Brazil follow a similar path to the US, if and when it decides to introduce regulation for the industry”
“The statement marks the third time a major authority in Brazil has issued a statement on bitcoin this year, following Banco Central do Brasil's warning in February and an April decision by the Receita Federal, the country's tax authority, that it would treat digital currencies as financial assets.”
“Overall, the paper suggests that bitcoin may hold the most long-term promise as a cross-border payment system, though one that would require a regulatory framework at a later date.”
Key Quotes
“A new study commissioned for the Federal Senate of Brazil has sought to examine how the spread of bitcoin and other digital currencies could impact Brazil's economy, and whether formal regulation is necessary for the domestic industry.”
“Authored by Cesar Rodrigues van der Laan, a researcher at Banco Central do Brasil, the 18-page document concludes that Brazil should not immediately regulate bitcoin, arguing that there is not enough activity in local markets to warrant such rulemaking.”
“The paper goes on to highlight the varied response regulators have taken to bitcoin around the world, citing the stance taken by Russia, which has taken active steps to ban bitcoin, and the US, where state regulators are seeking to establish a framework for the industry.”
“Notably, the paper advocates that Brazil follow a similar path to the US, if and when it decides to introduce regulation for the industry”
“The statement marks the third time a major authority in Brazil has issued a statement on bitcoin this year, following Banco Central do Brasil's warning in February and an April decision by the Receita Federal, the country's tax authority, that it would treat digital currencies as financial assets.”
“Overall, the paper suggests that bitcoin may hold the most long-term promise as a cross-border payment system, though one that would require a regulatory framework at a later date.”