Woofun AI reports that Brazilian Federal Deputy Lincoln Portela has introduced Bill No. 2.901/2026, seeking to institutionalize a permanent regulatory sandbox for blockchain technology and asset tokenization under the oversight of the Central Bank of Brazil. The legislation mandates that regulatory burdens be proportional to entity size, permitting small fintech startups to utilize simplified standards while prohibiting bureaucratic measures misaligned with the digital nature of cryptocurrency markets. Testing parameters encompass financial flow tracking, artificial intelligence credit applications, and programmable payment practices.

Concurrently, the bill facilitates the sharing of network infrastructure and institutional adaptation databases, contingent upon strict adherence to data protection regulations. This cooperative framework is designed to strengthen customer identity verification, bolster cybersecurity, and dismantle criminal structures utilizing cryptocurrency to obscure wealth. Non-compliant entities face penalties reaching up to 20% of their annual profit or revenue, as the proposal advances through House of Representatives committees.