Brazil Approves Crypto Law But Leaves Out Green Mining Tax Exemptions And Asset Segregation Issues

A crypto law that had been in the works for several months was recently approved by the Brazilian Chamber of Deputies after the Senate proposed some changes.

The proposal omitted two suggested tax exemptions for green mining operations, as well as the issue of separating customer assets from company funds for VASPs (Virtual Asset Service Providers).

The law, which has been delayed numerous times because of the general elections held last month, must now be officially recognized by President Jair Bolsonaro, who has to sanction it prior to declaring it law.

Moreover, deputies voted to eliminate the majority of the Senates proposed changes, enabling the law to be approved in a more general form and allowing for more specific rules which shall be formulated at a later date. The bills rapporteur, Deputy Expeditto Neto, emphasized the significance of the legislation for the country and called it a truly historic moment.

The passing of the new law represents the start of the countrys regulation of VASPs and other companies that utilize crypto, which would also now be overseen by a regulator appointed by the executive. This executive could be the Central Bank of Brazil or any another specific institution.