Brazil: The latest cryptocurrency regulations and tax opportunities for miners looking to go green
This week we’ll be diving back into the world of cryptocurrency, and today we’re going to Brazil, one of Latin America’s most recent nations to commence the regulation of crypto and establish a framework to build upon in the future and attract more investment in the sector within their borders.
What are the new regulations for?
The idea is that crypto regulation becomes the responsibility of a specific government department, and from this department, nominations can be made to allow the Securities and Exchange Commission and the Brazilian Central Bank to have jurisdiction over the regulation.
On a slightly different note, and something we briefly touched upon above, the lawmakers want mining and crypto activity to increase on their shores. How? You may ask, well, by removing import taxes and additional charges on ASIC miners, investors have a higher incentive to take their business to Brazil over other nations in the region.
Also, with no regulation, fraud and other crimes are able to go under the radar with no proper definition for what the crime actually is. Therefore, the new bill looks to define such crimes and outline the potential repercussions for committing such felonies in Brazil. This is helpful for foreign citizens looking to bring business or investment in the sector to the Latin American nation as it means you have a full understanding of the limits of activity before arriving and ensuring your security, not only within the law, but also of your assets.
Are there benefits in Brazil for potential crypto investors?
From 2019 to 2021, Brazil ranks amongst the three Latin American nations with the biggest share of crypto adoption, indicating a booming opportunity in the country for business relating to crypto, with an ever-increasing demand and market size.
However, large demand isn’t always enough to attract business, and this is where Brazil distinguishes itself from the crowd. As well as the import tax breaks on miners being brought to the nation, there are other breaks on offer for miners who are willing to make use of renewable energy to undertake their mining operations.
This is a mutually beneficial project which means you, the investor, are not only saving money, but you’re additionally benefitting the environment instead of national or international institutions. To go hand in hand with this, the VASP (Virtual Asset Service Provider) registration is made easier, allowing your business to be established faster and your ability to attain the tax benefits made more accessible.
So, if you are interested in finding out more about cryptocurrency regulations and renewable energy tax breaks in Brazil, as well as other opportunities to develop your business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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