Luiz Philippe de Orleans-Braganza, a descendant of the former royal family of Brazil, has spoken out against cryptocurrency regulation in the country, Cointelegraph Brazil reported on July 15.

Orleans-Braganza, who is also a federal deputy in the Brazilian National Congress, spoke out during a special commission meeting wherein lawmakers discussed a bill that proposes a legal framework for digital currencies.

Orleans-Braganza said the bill should only be discussed in the Congress if there is high consumer demand for it. Otherwise, according to Orleans-Braganza, it is merely an example of the state intervening in something which is not its business:

"Good regulation is one that comes from the consumer's demand for something for which he felt injured and calls for state protection. I question this adventure of wanting to regulate something which consumers and companies organized to receive Bitcoin do not demand.”

Orleans-Braganza further noted that cryptocurrencies may sometimes be used under illicit circumstances, but that does not justify limitless regulation by the state.

The President of the Chamber of Deputies, Rodrigo Maia, requested the creation of the aforementioned special commission to deliver an opinion on the bill, which aims to regulate Bitcoin (BTC) and other digital currencies in Brazil, on May 30, 2019. The commission is composed of 34 members in accordance with the House Rules of Procedure.

In June, the Department of Federal Revenue of Brazil released new rules requiring that cryptocurrency exchanges inform the regulator about users' transactions in order to identify tax fraud. The agency now requires that cryptocurrency exchanges operators based in Brazil provide information about all transactions carried out within their system.