What happened?
A Brazilian lawmaker, Eros Biondini, has proposed a bill to eliminate crypto taxes for those holding Bitcoin as a long-term value store. The bill seeks to remove clauses in the tax code related to taxing cryptoassets and repeal a 2023 law on income tax from crypto profits. This proposal will first be reviewed by a Chamber of Deputies committee, which will determine its progression to the lower house and potentially to the Senate and the President.
Who does this affect?
The proposed changes would primarily impact Brazilian citizens who invest in cryptocurrencies, especially those using Bitcoin as a long-term investment. Crypto holders in Brazil would benefit from tax exemptions, enhancing their ability to save without additional financial burdens. Additionally, the bill could influence businesses involved in cryptocurrency transactions by modifying the current tax landscape.
Why does this matter?
If passed, the bill could significantly impact the Brazilian cryptocurrency market by encouraging more investments and usage of Bitcoin and other cryptoassets. Removing taxes could attract more investors seeking a tax-free haven for their crypto holdings, thereby increasing market activity. This shift might also prompt other countries to reconsider their tax policies on cryptocurrencies, influencing global market dynamics.