Brazilian Bill Suggests Inclusion of Crypto in Protected Savings Assets
Summary:
Brazilian lawmakers are considering a bill, 4.420/2021, designed to protect individual savings from creditors up to an equivalent of 40 minimum wages. Recently, a suggestion to incorporate cryptocurrencies into the range of protected funds was endorsed officially. This inclusion became feasible following the enforcement of the Brazilian digital currency framework in June 2023. However, the recognition of cryptocurrencies also led to a potential increase in their taxation.
As part of discussions concerning a legislative measure designed to safeguard a significant portion of debtor savings, Brazilian lawmakers are considering the inclusion of cryptocurrencies in the revised version of the bill. The bill in question, numbered 4.420/2021 and proposed by Deputy Carlos Bezerra, is presently under the scrutiny of the Legal and Citizenship Committee of Brazil's lower congressional chamber. This legislation aims to amend the Civil Procedure Code, enacted in 2015, to secure private individual savings up to an equivalent of 40 minimum wages against any possible collection efforts from creditors.
On September 15, Deputy Felipe Francischini, the bill's proponent, officially assented to a recent suggestion from Deputy Fernando Marangoni, advocating for the addition of digital assets to the list of safeguarded funds. According to Francischini, “People's investment trends have shifted dramatically, with conventional savings accounts being usurped by alternative investment methods.”
Once enforced in June 2023, the new Brazilian digital currency framework has enabled the inclusion of virtual assets, which are declared as “electronically transferable digital value representations usable as payment or investment.”
However, the recognition of digital currencies as a legitimate form of money also bears some drawbacks in Brazil. For instance, an amendment to increase taxes on foreign-held cryptocurrencies received approval from a congressional committee in August.
Published At
9/20/2023 8:28:28 AM
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