The Brazilian Congress should examine the legality of a tax measure of cryptocurrency introduced by President Luiz Inácio Lula Da Silva, which imposes a strong tax of 17.5% on all crypto trading activities and suppresses previous exemptions for small transactions (1). The provisional measure, promulgated in June, targets decentralized financing operations (DEFI) and auto assets -chetodits, marking a significant change compared to the previous system, which has only imposed transactions greater than 35,000 reais ($ 6,320) (1). The legislators are now faced with a critical deadline: the measure must be approved or repealed on October 8 to remain valid, with a conference hearing provided for on August 6 (1).
The tax framework has sparked an intense debate, criticism arguing that it could stifle innovation in the growing cryptographic sector of Brazil and will overcome small investors. The deputies introduced proposals to contest the legality of the measure, invoking concerns concerning its broad range and its lack of regulatory clarity (1). Conversely, supporters reflect the policy as a necessary step to integrate digital assets into the formal financial system of Brazil, generate income for public infrastructure and ally on international tax standards (1). The government has stressed the need to compensate for the increases proposed in financial transaction taxes by increasing the sources of income related to cryptography (1).
The stakeholders in the industry remain divided. While some exchange platforms warn against compliance costs and operational challenges, others consider the tax as a potential legitimization force for the crypto as an investment asset (1). A key challenge lies in the definition of taxable activities, including air parachts, staunch rewards and non -tumbled tokens transactions (NFT). The government has not yet clarified how the tax interacts with the existing rules of capital gains, raising questions about administrative complexity (1).
The debate takes place in the middle of the broader thrust of Brazil to modernize its financial infrastructure, including the plans for a digital currency of the central bank (CBDC) by 2026. However, the cryptographic tax regime could face external pressures as the United States intensifies the examination of policies of foreign digital digital under the Trump administration (1). Meanwhile, Brazil’s efforts to strengthen links with the Nations of the BRICS, for example through a proposed submarine cable project, highlight its ambitions in Fintech innovation, although the reception of the tax remains uncertain (1).
Congress discussions should continue until the end of October, without any clear consensus that has emerged so far. The result will depend on the negotiations between government agencies and industry representatives, emphasizing the complex balance between regulatory surveillance and technological progress (1).
Source: (1) (Brazilian congress to debate the cryptographic tax regime imposed by Lula) (https: // news.bitcoin.com / Brazilian-Congress-to-DEBATE-LULA-IMPOSE-CRYPTO-Tax-Scheme /)
