The new law legalises the use of various digital currencies as a payment mode across the country. Credit: WorldSpectrum from Pixabay.

Brazilian President Jair Bolsonaro has signed a bill to create regulatory framework for carrying out cryptocurrency transactions across the country.

The bill, which has already been approved by the Congress, received the presidential clearance without any amendments.

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The new law is expected to take effect within 180 days.

It enables consumers in Brazil to use cryptocurrencies as a legal mode of payment.

The law also has provisions for dealing with fraud involving virtual assets and allows virtual asset service providers to operate only with prior permission from a federal public administration agency.

It also says that Brazilian Securities and Exchange Commission (CVM) will regulate the use of crypto as an investment vehicle, while the Central Bank of Brazil (BCB) or any other body appointed by the Federal Executive Branch will oversee the use of crypto for payment purposes.

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The law does not make crypto a legal tender in Brazil, but legalises the use of various digital currencies as a payment mode across the country.

Besides, it facilitates a licensing administration for virtual asset service providers and lays down penalties for fraud related to digital assets.

It comes shortly after crypto exchange Crypto.com secured payment institution licence (PMI) from Brazil’s central bank.

The licence allows the firm to offer regulated fiat wallet solutions to its clients in Brazil.