Brazilian lawmakers are working to provide stricter regulations for cryptocurrency-related crimes, blessing a set of new penalties for laundering money with crypto.

Brazil's Special Committee of the Chamber of Deputies has canonical a bill that significantly tightens penalties for financial crimes that use cryptocurrencies like Bitcoin (BTC), co-ordinate to an official announcement on Midweek.

The latest regulatory amendments are part of bill 2303/15, increasing the size of the fines from one-third of the corporeality of laundered money to 2-thirds. The bill also proposes to enhance minimum prison terms from three to iv years, and increase maximum prison time from 10 years to xvi years and viii months, in addition to a fine.

According to the announcement, the bill is subject field to further discussions by the Chamber'southward Plenary.

Federal Deputy Aureo Ribeiro stressed that the new neb will help the state to protect Brazilians from crypto scam schemes, noting that more 300,000 people were afflicted by "financial pyramid schemes with cryptocurrency" in Rio de Janeiro.

"With the lack of regulation, people have nowhere to turn. The market place will advance and adjust in Brazil. There will no longer be profiteers using technology to deceive millions of Brazilians," Ribeiro stated.

Related: Brazil Stock Exchange wants to provide oracles for digital real

Ribeiro was optimistic about other aspects of the bill, which regulates broader cryptocurrency operations such every bit trading, custody, fiat exchanges and payments. Co-ordinate to a report by Cointelegraph Brasil, Ribeiro said that Bitcoin volition get accepted as payment in Brazil once the bill is passed into law.

Brazil has seen some signs of growing cryptocurrency development and adoption recently. In August, Roberto Campos Neto, caput of Brazil's central bank, called on the country to encompass the crypto marketplace by reshaping local regulations. In June, the Brazil Stock Exchange launched trading of some other Bitcoin commutation-traded fund (ETF), following previous listings of several other crypto ETFs earlier this year.