Brazilian lawmakers seek to add crypto to debtors’ protected assets list

David Attlee31 minutes agoBrazilian lawmakers seek to add crypto to debtors’ protected assets listCryptocurrencies may become a part of the personal savings category, protected from seizures on behalf of creditors.352 Total views2 Total sharesListen to article 0:00NewsJoin us on social networksAs Brazilian lawmakers discuss the bill that would grant strong protection to a sizable portion of the savings assets of debtors, a separate initiative is seeking to include crypto in the latest version of the bill. 

Bill number 4.420/2021, authored by Deputy Carlos Bezerra, is currently being considered by the Constitution, Justice and Citizenship Committee of the lower chamber of the Brazilian Parliament. Amending the Code of Civil Procedure, issued in 2015, it aims to protect the private savings of individuals up to an amount equal to 40 minimum wages from potential seizure on behalf of their creditors.

Related:Brazil: Senate Commission will analyze the AI bill in 120 days

On Sept. 15, the bill’s rapporteur, Deputy Felipe Francischini, officially confirmed its agreement with a recent amendment suggestion from another Deputy, Fernando Marangoni, to include crypto assets in the list of protected funds. According to Francischini’s note:“Nowadays, people"s investment behavior changed, with the traditional savings account losing ground to other forms of financial investment.”

Such inclusion became possible after the Brazilian crypto framework came into effect in June 2023. The current amendment refers specifically to this framework, defining virtual assets as “digital representations of value that can be traded or transferred via electronic means and used for making payments or investments.”

Acknowledgment of crypto as real money has an opposite side in Brazil. In August, a congressional committee approved amendments to a bill that would raise taxes on cryptocurrencies held overseas.

Magazine:Are DAOs overhyped and unworkable? Lessons from the front lines# Brazil# Adoption# RegulationAdd reactionAdd reactionRead moreWhat is profit and loss (PnL) and how to calculate itLatvia central bank opens to fintech with ‘Innovation Hub’Indian state governments spur blockchain adoption in public administration