Brazil: lawmakers to discuss cryptocurrency bill that could eliminate mining taxes – DiarioBitcoin

Texas could raise funds through NFT and harness 'abundant' energy to mine Bitcoin

Brazil: lawmakers to discuss cryptocurrency bill that could eliminate mining taxes - DiarioBitcoin By Hannah perez

There are three bills that will be discussed this week. Among them, it is proposed to eliminate taxes on cryptocurrency mining, as long as it uses renewable energy sources.

***

Brazilian lawmakers are preparing to discuss various bills this week that address regulation of the digital currency space at the local level and that could eliminate taxes on crypto mining operations.

According reported The official news outlet of the Senate this Tuesday, the Economic Affairs Commission (CAE), a legislative body of the Federal Senate of Brazil, will debate three bills on Thursday of this week. It’s about the proposals PL 3,825 / 2019, PL 3,949 / 2019 and PL 4207/2020, presented respectively by Senators Flávio Arns, Styvenson Valentim and Soraya Thronicke.

Brazil Senate Discusses Crypto Law Proposals

According to the report, the public debate will address the impacts of cryptocurrencies, services related to transactions with digital currencies on electronic commerce platforms, the conditions for the operation of crypto exchanges in the Brazilian economy, as well as crimes related to the fraudulent use of digital assets.

In addition to the CAE and legislators, representatives of the Central Bank and members of the Securities Commission (CVM) and the Brazilian Federation of Banks (Febraban) will also participate in the discussion. Likewise, Gustavo Chameti, the founder of the exchange of Brazilian cryptocurrencies, Bitcoin Market.

The discussion around the legislative projects that address the regulation of the digital asset market will come a few days after the senator Irajá Silvestre Filho will present a report with his opinions on the three proposals.

See also  Mastercard chooses AVA Labs to participate in its Start Path Crypto accelerator - DiarioBitcoin

At the end of November the senator Silvestre Filho, from the Social Democratic Party, presented a document in which it summarizes the most outstanding points of the projects. As reported by the local newscast Portal do Bitcoin, the legislator presented a favorable opinion and said that the three projects are “in essence very similar“.

No taxes for crypto mining

In general, the highlights of the legislative proposals are the regulatory aspects of cryptocurrencies. On the one hand, the law would oblige exchanges to comply with the Money Laundering Act (AML) as well as to apply the Consumer Protection Code. On the other hand, it would impose a Zero tax rate for mining energy expenditure if the source is clean and renewable.

Aware of the high demand for electrical energy in activities related to the exploration of virtual assets and as a way to encourage the use of renewable energies, we propose the reduction to zero (0) of the tax rates levied on the acquisition of computer machines and tools. used in these activities.

In accordance with Cointelegraph, the proposals suggest that cryptocurrency mining activities would be regulated by the National Electric Power Agency (ANEEL), which would also be in charge of approving the acquisition of equipment. The language of the document seems to consider only proof-of-work (PoW) mining, such as Bitcoin, which is done by equipment such as ASICs.

See also  Venezuelan illustrator EDO denounces plagiarism of his creations as NFT of OpenSea - DiarioBitcoin

On the other hand, it suggests that hardware wallets, such as Ledger, must also be approved by ANEEL, since they can be considered as equipment for the “preservation”Of digital assets, as highlighted Cointelegraph.

“The acquisition of machines (hardware) and computational tools (software) used in the activities of processing, mining and preservation of virtual assets, by legal entities that use 100% (one hundred percent) of the electricity generated from renewable sources in these activities, duly admitted and approved by the local electric power concessionaire, in accordance with ANEEL Resolution No. 687/2015 ”.

Regulatory framework for cryptocurrencies

Similar to other bills, these bills suggested the Central Bank of Brazil as the main regulator of the cryptocurrency market, as well as for the regulation of exchanges and commercial platforms. The Brazilian Securities Commission (CVM) is also mentioned.

However, Senator Silvestre Filho considered that this The task of defining the governing body would not correspond to the Legislative Power. Instead, it hopes that the Executive Power will be the one who appoints the competent entities for the regulation of the sector.

The legislator recalled in the document that the three projects determine that the “crypto asset intermediaries”Must be subject to the regulations of the Money Laundering Law. In practice, this means that exchanges must be able to identify their customers, keep records of transactions and maintain communication with the COAF (Council for the Control of Financial Activities).

See also  Fight for Twitter! Elon Musk criticizes Binance for problems with Dogecoin withdrawals, CZ responds

The senator also says that the Consumer Protection Code should be applied in relationships that involve the purchase and sale of cryptocurrencies, “especially because of technical vulnerability”From consumers in the still new sector.

The main lines that we offer are the definition of a regulatory framework, with an eminently principled character, aimed at protecting and defending the consumer, combating financial crimes and ensuring transparency in operations with crypto assets.

Various bills under review

If the regulations are approved, Brazil could become one of the most attractive nations for miners in Bitcoin of all the world. Although it must still go to the Chamber, (which is the Senate review house) where it will also be analyzed and may undergo modifications.

However, it should be noted that the legislators of the South American power are already reviewing other projects to regulate the growing crypto space at the national level.

As remembered Portal do Bitcoin, the The first bill aimed at regulating the cryptocurrency market in Brazil was presented by a special commission of the Chamber of Deputies at the end of September. Its about bill 2303/15, of the federal deputy Aureo Moreira Ribeiro. That proposal has yet to be voted on in a next plenary session.

Law projects 2060/2019, 2234/2021 and 2140/202 are also currently pending in the Chamber of Deputies, in accordance with Cointelegraph.


Recommended reading


Sources: Senate Agency, Portal do Bitcoin, Cointelegraph

Article by Hannah Estefanía Pérez / Daily bitcoin

Image from Unsplash

Leave a Comment

Your email address will not be published. Required fields are marked *