While Brazil has not made Bitcoin legal tender as El Salvador did last year, the South-American nation has passed a law that legalizes crypto payments throughout the country.
The Chamber of Deputies of Brazil, a federal legislative body, has passed a regulatory framework that legalizes the use of cryptocurrencies as a payment method within the country. While this makes significant progress for crypto within Brazil, the law still requires the signature of the president of Brazil for it to be enacted.
The passing of the bill does not make any cryptocurrencies legal tender within the country. However, the bill will include digital currencies and air mileage programs in the definition of payment methods that are under the supervision of the country’s central bank.
After being passed into law, the government’s executive branch must decide which office will be will be in charge of supervision. Still, tokens that will be considered securities will remain under the jurisdiction of the Brazilian Securities and Exchange Commission (CVM).
Apart from designating crypto as a payment method, the law enables the creation of licenses for crypto exchange platforms and for custody and management of crypto by third parties. In addition to this, the law will require exchanges to make a clear distinction between company and user funds, to avoid another incident like the FTX collapse.
Back in June, a similar proposal was issued to allow Brazilians to use crypto as a means of payment and protect their private keys from being taken by courts. The proposal aims to make crypto assets a means of exchange and an “instrument of access” to goods, services or investments.
Meanwhile, while the FTX collapse has impacted many sectors within the crypto space, it will not affect everyday crypto use for Brazilians according to Thiago César, the CEO of Transfero Group, which is closely tied to the Brazilian crypto ecosystem.
Amid the ongoing manhunt for Terraform Labs co-founder and CEO Do Kwon, South Korean authorities have spread out their investigations to target other Terra executives. Prosecutors issued an arrest warrant for co-founder Daniel Shin and seven other engineers and investors of the firm following suspicion of gaining illegal profits before the massive collapse of the Terra ecosystem.
The Seoul Southern District Prosecutors Office in South Korea suspected that Shin possessed Terra tokens, which were pre-issued without the public knowledge of investors. In doing so, Shin allegedly bagged profits worth 140 billion won (roughly $105 million) by selling the pre-issued tokens during the bull market.
Arrest warrants were also sought for three Terraform Labs investors and four engineers responsible for Terra USD (UST) and LUNA initiatives, confirmed local media Yonhap News Agency. On Nov. 19, South Korean authorities seized assets worth over $104 million from Shin under the same suspicion of making unfair profits.
At the time, Shin’s attorney maintained the counter-narrative, stating that “Reports that CEO Shin Hyun-seong sold LUNA at a high point and realized profits or that he made profits through other illegal methods are not true.”
Speaking against the arrest warrant, Shin pointed out:
“I left (Terraform Labs) two years before the collapse of Terra and Luna, and have nothing to do with the collapse.”
The seizure of funds aimed to minimize further losses for investors in case Shin decided to dispose of the stolen funds. While Kwon maintains that he’s not on the run from South Korean authorities, 4,000 members of a retail investor group are attempting to track down the fugitive’s whereabouts.
On Oct. 6, South Korea’s Ministry of Foreign Affairs ordered Kwon to surrender his passport, which, if not done, would result in the permanent cancellation of his passport. The deadline has passed since.
A local report from South Korea claimed that prosecutors obtained evidence regarding Kwon’s order to manipulate the price of Luna Classic (LUNC). However, a Terraform Labs spokesperson dismissed the allegations when speaking to Cointelegraph, highlighting their disappointment in seeing “the Korean prosecutors continue to try to contort the Capital Markets Act to fit their agenda and push baseless claims.”
Unconfirmed reports suggest that Kwon moved from South Korea to Singapore before ultimately transitioning to Dubai, United Arab Emirates.
Cryptocurrency exchange Binance plans to reenter the Japanese market after acquiring a 100% stake in a licensed crypto service provider in the country, Cointelegraph Japan reported.
In an official public announcement on Nov. 30, Binance CEO Changpeng Zhao said the crypto exchange was committed to re-entering the Japanese market under regulatory compliance. The acquisition of Sakura Exchange BitCoin (SEBC), a Japan Financial Services Agency-licensed business, would mark the re-entry of global exchange in the Japanese market after four years.
Talking about the importance of the latest acquisition, a Binance spokesperson told Cointelegraph:
“We can say that the acquisition of SEBC marks Binance’s first license in East Asia, and as Asia is a market with potential, we hope to expand in other regions.”
Binance had to shut its operations and plans to open a headquarter in Japan in 2018 after an FSA notice for operating without a license. The Japanese government warned the crypto exchange again in 2021 on similar grounds.
Binance’s acquisition of a regulated entity to enter a crypto market where it has found it difficult to acquire a license independently is nothing new. Earlier, Binance managed to reenter the Malaysian market after acquiring a stake in a regulated entity.
Similarly, the exchange reentered the Singapore market with an 18% stake in a regulated stock exchange. The crypto exchange also managed to access United Kingdom’s sterling payment network with a partnership with Paysafe after the regulators declined it access to the same.
Cointelegraph reached out to Binance to enquire whether the exchange had applied for an independent license in Japan as well, but a spokesperson declined to comment.
Japan is considered one of the first crypto nations to introduce some form of regulation on trading crypto assets. While strict, the Japanese approach to cryptocurrency regulations was widely appreciated, and G20 nations even consulted the nation over global crypto parameters.
Recently, Japan has eased up its regulatory policy further to encourage more crypto startups and allow them to flourish and has made coin listings easier.
This Daily Dose was brought to you by Cointelegraph.