Brazil eliminates taxes on cryptocurrency mining equipment

The Federal Government announced a measure that could boost the cryptocurrency sector in the country: the exemption of taxes on bitcoin and other cryptocurrency mining equipment.

The decision, signed by Vice President Geraldo Alckmin, who is also the Minister of Development, Industry, Commerce, and Services (MDIC), took effect last Tuesday (20).

The exemption covers machines such as ASICs (used in bitcoin mining) and GPUs (used for other cryptocurrencies), which were previously subject to import taxes of up to 12%.

The measure aims to reduce costs for companies in the sector, attract investments, and strengthen Brazil as a digital mining hub, leveraging the abundant renewable energy in the country.

Experts say that the decision could increase Brazilian competitiveness in the global cryptocurrency market, as well as generate jobs and encourage technological innovation.

However, critics warn about the high energy consumption of mining and the need for environmental regulation.

With this initiative, the government signals support for the crypto-assets sector, which has been gaining ground in the Brazilian financial market.

The measure could also influence discussions about sector regulation in the National Congress.