By Pradeep Saran, September 20,2023
Brazilian lawmakers are currently engaged in discussions regarding a bill that proposes significant protection for a substantial portion of debtors’ savings assets. Concurrently, a separate effort is underway to incorporate cryptocurrencies into the latest version of this bill.
Deputy Carlos Bezerra is the author of Bill 4.420/2021, which is presently under consideration by the Committee on the Constitution, Justice, and Citizenship within the Chamber of Deputies of the National Congress of Brazil. This bill seeks to amend the Code of Civil Procedure, originally issued in 2015, with the primary objective of safeguarding the private savings of individuals. Specifically, it aims to shield these savings, up to an amount equivalent to 40 minimum wages, from potential seizure on behalf of their creditors.
On September 15, Deputy Felipe Francischini, the rapporteur for the bill, officially endorsed a recent amendment proposed by Deputy Fernando Marangoni to include cryptocurrency assets within the list of protected funds. In his statement, Francischini highlighted the changing investment landscape, noting that traditional savings accounts have been losing ground to alternative forms of financial investment.
This pivotal inclusion of cryptocurrencies became feasible following the enactment of Brazil’s crypto regulatory framework in June 2023. The amendment now references this framework and defines virtual assets as “digital representations of value that can be traded or transferred electronically, serving purposes such as payments or investments.
“Furthermore, in August, a Brazilian congressional committee passed amendments to a bill aimed at increasing taxes on cryptocurrencies held overseas.In a unique move, this article can also be collected as an NFT, preserving this historical moment and demonstrating support for independent journalism within the crypto space.