The government wants to tax all profits from cryptocurrencies — the measure still depends on Congress

The federal government has published MP 1.303/2025, which abolishes the income tax exemption on earnings from cryptocurrencies up to 35 thousand Brazilian reais per month. From January 1, 2026, all profits will be taxed at a fixed rate of 17.5%, with quarterly reporting. But be aware: the measure only takes effect if approved by the National Congress.

This proposal is a heavy blow to retail investors. The unified taxation ignores the reality of those operating with modest amounts, stifling adoption and financial education through digital assets. This is a tax collection strategy disguised as modernization of the tax system, which may push investors into the informal economy or abroad.

Instead of promoting the crypto sector in Brazil, the government chooses to complicate the existence of its most democratic base: the small investor. Now Congress is responsible for stopping this regression.$BTC $BNB $BTTC