Brazil has passed a law legalising cryptocurrency payments throughout the country.

The regulatory framework has been approved by the federal legislative body, the Chamber of Deputies of Brazil, legalising crypto as a means of payment. However, despite this being considerable progress for crypto in Brazil, the law still needs the president’s signature in order for it to be passed.

The bill will include digital currencies and air mileage programs under the payment methods definition, supervised by the central bank, but does not make cryptocurrencies legal tender in the country, Cointelegraph reports.

Once passed into law, the government’s executive branch will determine which office will supervise. That said, token-deemed securities will still be under the jurisdiction of the Brazilian Securities and Exchange Commission (CVM).

As well as assigning crypto as a payment method, the legislation permits licences for crypto exchange platforms as well as crypto custody and management by third parties. Furthermore, exchanges will be required to maintain a clear difference between company and user funds, the Cointelegraph report adds.

Earlier this year, in June, a similar proposal was submitted permitting Brazilians to utilise crypto as a payment method and protect private keys from being taken by courts. The proposal intends to make cryptocurrencies a means of exchange as well as an “instrument of access” to goods, services, or investments.

Moreover, according to Transfero Group CEO, Thiago César, the recent FTX exchange collapse will not impact everyday crypto use for people in Brazil, despite affecting numerous sectors within the cryptoverse. He said at the time: “A lot of the crypto volume in Brazil derives from players that are willing to exchange their local currency into an internationally liquid asset denominated in Dollars. So in that sense, the market will not die down because crypto is just rails for that.”