Brazil has signed a new law that establishes a set of regulations for all digital asset services and providers in the country. Businesses providing services or onboarding to blockchain-based assets and cryptocurrency will have 180 days to comply before penalties are administered. 

The goal of the new law is to minimize the potential for criminal activity such as money laundering and Ponzi schemes using blockchain services. To do so, web3 businesses will need to apply for a license through Brazil’s Securities Exchange Commission. 

A new governing body will also be established soon to cover any fringe blockchain assets that cannot be directly monitored by Brazil’s Securities Exchange Commissions. This will help aid the country in regulating activity on certain blockchains which fall into a gray area between security and commodity, similar to the ongoing Ripple Lawsuit.