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The Brazilian legislator Eros Biondini has introduced a draft bill aimed at eliminating crypto taxation, specifically for individuals who hold Bitcoin (BTC) as a long-term asset.
The MP has submitted his proposal to the Chamber of Deputies, as reported by the Portuguese-language media outlet Livecoins.
Brazilian Crypto Tax: Is Abolition Possible?
The proposed legislation seeks to eliminate the provisions in the tax code that specifically address the taxation of cryptoassets.
The Brazilian lawmaker Eros Biondini calling for support for his bill on social media. The caption reads: “Fight against the taxation of cryptoassets in Brazil.” (Source: @erosbiondini/Instagram)
Additionally, it proposes the repeal of a 2023 law that outlines the methods for collecting income tax on profits generated from cryptoassets.
The bill will initially be evaluated by a committee within the Chamber of Deputies. This committee will determine whether to forward the bill to the lower house.
If approved, it could subsequently progress to the Senate and the President’s office. Both the Senate and the President hold the authority to veto the legislation.
Biondini has also asserted that new taxes on financial transactions, such as foreign exchange and insurance transfers, are poorly timed.
He argued that imposing additional tax burdens on the populace during “a time of economic fragility” would yield adverse effects.
The lawmaker pointed out that the Brazilian tax “burden” reached 32.32% of the nation’s Gross Domestic Product (GDP) in FY2024. This represents the highest tax-to-GDP ratio in the past 15 years, according to Treasury data.
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Biondini criticized the government’s stance on crypto. He expressed that Brazil, “instead of leading” in global crypto adoption, is now “going against the grain.”
He stated that current and forthcoming crypto tax regulations “penalize individuals who seek a legitimate, secure, and sovereign store of value.”
Formal Acknowledgment for BTC Holders
The crypto-advocating legislator has previously proposed a bill aimed at officially recognizing Bitcoin as a strategic store of value in Brazil.
This initiative seeks to establish tax exemptions for BTC purchasers and holders. It also aims to clarify citizens’ rights to manage their coins independently, without dependence on crypto wallet providers.
Méliuz has become the first Bitcoin treasury company in Brazil after shareholders approved the acquisition of $28.4 million Bitcoin.#Méliuz #BitcoinTreasury #BitcoinStrategyhttps://t.co/v1zZ77GH3h
— Cryptonews.com (@cryptonews) May 16, 2025
Méliuz has become the first Bitcoin treasury company in Brazil after shareholders approved the acquisition of $28.4 million Bitcoin.#Méliuz #BitcoinTreasury #BitcoinStrategyhttps://t.co/v1zZ77GH3hBiondini took to social media last week to rally the Brazilian crypto community in support of his bill.
He suggested that if the issue gained significant attention, the lower house would be compelled to dismiss attempts to increase crypto tax revenues in Brazil.
Biondini also urged his fellow lawmakers to endorse his proposal. He explained that it was crafted to protect taxpayers, industry stakeholders, and Brazil’s “economic sovereignty.”
In November of the previous year, Biondini revealed a bill proposing the establishment of a national Bitcoin reserve.
The initiative called for the government to allocate up to 5% of Brazil’s $372 billion international reserve fund to Bitcoin.
The post Brazilian Lawmaker Proposes Scrapping Crypto Tax for Long-term Investors appeared first on Cryptonews.
