The former pro soccer player said in a congressional hearing that his likeness was improperly used to market an allegedly fraudulent crypto scheme.
The investigation centers around Ronaldinho's company '18kRonaldinho', which promised clients daily profits of over 2% through crypto investments.
If approved, the legislation would place crypto assets held by Brazilians overseas subject to the same tax rules governing traditional assets.
Explore how the emerging economies of Brazil, Russia, India, China and South Africa cooperate in areas such as economics, development and global governance.
This development comes amid a global regulatory crackdown on Binance, which is facing investigations in multiple countries.
The decree authorizes the central bank to regulate and supervise virtual asset service providers, and ensures the country's securities regulator will continue to handle many tokens.
As a payment institution, the new fintech MB Pay will enable certain digital banking services to the crypto exchange's users in the country.