Approval or Opposition to Cryptocurrency Taxes in Brazil: A Decisive Debate
Proposal to Eliminate Brazil's Cryptocurrency Tax Law
Deputy Eros Biondini submitted a modification proposal to the Brazilian Congress. He proposed a draft to eliminate Chapter 5 of Temporary Measure No. 1303/2025 on taxes for cryptocurrency activities. Additionally, he suggested repealing the provisions of Law No. 14754/2023 related to capital gains tax from cryptocurrencies. The main purpose is to help reduce the tax burden for the investor community and small businesses.
Impact of Tax Policy on the Cryptocurrency Community
Biondini opposed the high tax increase issued by the government through Decree No. 12499/2025. This increase far exceeded the initial tax regulation's goal, expected to generate a significant revenue of 20.5 to 41 billion reais from 2025-2026. It would put immense pressure on micro-enterprises, freelancers, and small individual investors, reducing the development potential of the cryptocurrency market in Brazil.
Community Opinions and Government Reactions
The legislator noted active responses from the cryptocurrency community on social media. He emphasized that Brazil had the potential to lead global trends in cryptocurrency adoption and development, but this decision goes against that. Instead of encouraging diversification of value storage, the new policy inadvertently penalizes users and investors seeking to diversify their financial portfolios by leveraging cryptocurrency potential.
Brazil's 2023 Cryptocurrency Profit Tax Policy
On June 14, the press reported that the Brazilian government planned to apply a unique 17.5% tax on profits from cryptocurrency transactions. This tax targets individual investors but also raises concerns about potentially reducing trading activities and impacting the growth of the country's digital Capital market.
