Brazilian lawmakers are discussing the possibility of including cryptocurrencies in the list of assets subject to protection from confiscation in case of debts to creditors.
The Commission on Constitution, Justice, and Citizenship of the Chamber of Deputies of the National Congress of Brazil is discussing amending Bill No. 13.105, which would protect some of debtors’ personal assets, including cryptocurrency savings.
Bill No. 4.420, authored by Deputy Carlos Bezerra, amends the Code of Civil Procedure, according to which a portion of individuals’ personal savings should be protected from possible confiscation by creditors. The amount of such assets shouldn’t exceed 40 minimum wages of a Brazilian citizen.
Cryptocurrencies are also proposed to be included in the list of legally protected assets. The amendment was initiated by Deputy Fernando Marangoni. He said that the investment behavior of Brazilians had changed, and digital assets had become a significant part of the savings of citizens, not inferior to traditional forms of financial investment.
In 2022, two-thirds of Brazilian residents expressed their willingness to use crypto on a regular basis.
It’s worth noting that the option to consider cryptocurrencies as personal savings became possible thanks to the legalization of crypto payments in Brazil. The amendment proposed by Marangoni refers to the definition of cryptocurrencies in the adopted legislation; in particular, the possibility to use virtual assets for investment.
Due to the legislation, Brazil has become one of the most promising regions for the development of crypto business. Thus, the major crypto exchanges Binance and Coinbase began expanding the list of their services in the country.