By Shelly Melancon (Switzerland)
Martins’ proposal is already before the parliament. His proposal seeks to modify article 835 of Brazil’s civil procedure code. The policy would also state that cryptos are not recognized as currencies. However, they can be used to settle financial transactions.
Such transactions can happen on exchanges, for investment purposes or as a tool for paying for goods and services. The proposal would enable digital assets to be acceptable for investment and other financial transactions.
According to Martins, the nation’s legal system would have greater authority over cryptos through this policy amendment proposal. For instance, courts can seize a debtor’s digital assets by working with exchanges.
Courts Can Also Settle Debts By Selling Digital Assets Where Necessary.
A part of the proposal reads, “a creditor may seek the intervention of the court to seize their debtor’s digital assets if they can’t find any physical assets they can hold for such debts. The court’s order can be done via ex-officio, an electronic order or crypto-related intermediaries. Thus, only the assets equal to the debt amounts are seized.”
But the proposal explains that courts cannot take forceful possession of users’ non-custodial private wallet keys. The chamber of deputies is also discussing the proposal. However, the discussion is still in its early stages.
Also read:Any modification or passage into law might take some years before happening. What might hasten the modification is that it is the only current proposal related to cryptos in the Brazilian legislature.
Brazil’s Crypto Landscape
Brazil authorities have made several changes to its financial policies to accommodate cryptos. Two months ago, the legislators approved a proposal seeking the regulation of the digital asset industry.
However, the bill is awaiting the country’s president. The president will also establish a board that will perform oversight functions over the crypto industry. The bill states that “digital currencies represent value that can be transferred or traded electronically.”
Recently, Brazil’s Senate approved another crypto proposal seeking the taxation of all crypto-related transactions. Several controversies trailed the passage of this bill. The controversy is because the bill states that crypto to fiat transactions will also be subject to tax.
Brazil has been exploring the idea of having a national digital currency. The nation’s apex bank is working with leading crypto players to develop and run a pilot test of the program.
Two of those players are the Stellar Development Foundation and Mercado Bitcoin (the biggest crypto exchange in the country). However, Brazil’s central bank clarified that the CBDC platform wouldn’t replace its mobile app platform, Pix.
Recent Bloomberg data states that Pix has more than 150 million users. The apex has not yet revealed a schedule for the pilot test of this CBDC launch. According to multiple data, Brazil’s crypto sector is one of the fastest-growing sectors among Latin American nations.
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