Brazilian legislators have approved the complete regulatory framework for trading and using cryptocurrencies as payment.

What Happened: The new bill passed on Tuesday night in Brasilia, the country's capital, recognizes Bitcoin (CRYPTO: BTC) as a digital representation of value that can be used for payments and investment.

The legislation covers a wide range of “virtual assets” and requires only the President's signature to become law. However, it does not make bitcoin or any cryptocurrency legal tender in the country.

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Why It Matters: According to Bitcoin Magazine, the bill tasks the Central Bank of Brazil with overseeing the bitcoin market when it is used as payment, while the country’s securities and exchange commission will monitor it when it is used as an investment asset. The federal tax authority was among those who assisted lawmakers with the reform legislation, along with the BCB and CVM.

El Salvador became the first country to recognize BTC as a legal tender, with the Central African Republic reportedly following suit a bit later.

Price Action: At the time of writing, BTC was trading at $16,956, up 4.15% in the last 24 hours, according to Benzinga Pro. 

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