The Lula government has been working on two main fronts regarding cryptocurrencies: regulation and taxation. Recently, the government implemented measures to regulate the cryptocurrency market, assigning the Central Bank the role of overseeing virtual asset service providers. Additionally, the government proposed a new Provisional Measure that ends the tax exemption for cryptocurrencies up to R$ 35 thousand and establishes a rate of 17.5% for capital gains on these assets.

Regulation:

Presidential decree No. 11,563, signed by Lula, regulates Law No. 14,478/2022, known as the Legal Framework for Cryptocurrencies.

This legislation grants the Central Bank the responsibility to authorize, regulate, and supervise companies that offer services related to cryptocurrencies.

The Central Bank will also be able to establish rules for the operation of these companies and carry out their supervision.

The Securities and Exchange Commission (CVM) continues with its competencies, as does the National Consumer Defense System and the agencies responsible for preventing crimes related to cryptocurrencies.

Taxation:

A new Provisional Measure, published by the government, alters the taxation regime for investments, including cryptocurrencies.

The PM ends the tax exemption for gains of up to R$ 35 thousand per month from cryptocurrencies.

Any capital gain from cryptocurrencies will be taxed, following the same logic as other financial investments.

The rate defined in the PM is 17.5% on the profit obtained from the sale of cryptocurrencies.

The PM may also affect the currency exchange market, with the possibility of including cryptocurrency operations in this market.

The lack of differentiation between types of digital assets may generate legal insecurity and hinder market adaptation.

Experts point out that taxation may harm investments and reinforce the government's revenue-raising impetus.#imposto