The bill still requires the approval of the executive branch before it becomes law.

Brazil’s Chamber of Deputies approved a bill on Tuesday regulating the crypto industry.

The bill, which was approved by the Senate in April and had been stuck in the Chamber of Deputies, now requires the approval of the executive branch to become law.

The bill, authored by deputy Aureo Ribeiro, establishes a new crime of fraud involving virtual assets, with a penalty of between two and six years plus a fine. It also stipulates the creation of a “virtual service provider” license, which is to be requested by companies, including exchanges and other crypto firms.

According to the text, companies will have 180 days to adapt to the new rules before the law will be enforced.

The text stipulates that crypto assets considered securities will be regulated by the Brazilian Securities and Exchange Commission (CVM), while other digital assets not falling into that category will fall under the responsibility of another body to be appointed by the executive branch. The Central Bank is expected to be chosen.

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