While Brazilian lawmakers are in the midst of debating a bill aimed at providing robust protection for a significant portion of debtors' savings assets, another initiative is pushing for the inclusion of cryptocurrencies in the latest version of this bill.
The bill in question, designated as Bill 4.420/2021, has been introduced by Congressman Carlos Bezerra and is currently under consideration by the Constitution, Justice, and Citizenship Committee of the Chamber of Deputies of Brazil's National Congress. This bill proposes amendments to the Civil Procedure Code, which was enacted in 2015, with the primary aim of safeguarding an individual's private savings. It seeks to protect savings equivalent to 40 times the minimum wage from potential garnishment by creditors.
On September 15, Deputy Felipe Francischini, who is the rapporteur for the bill, officially expressed his support for a recent amendment put forth by Fernando Marangoni. This amendment suggests the inclusion of cryptocurrencies in the list of protected assets. According to Francischini's statement, this step is essential because people's investment habits have evolved, with traditional savings accounts gradually being replaced by alternative financial investments.
This proposed inclusion of cryptocurrencies is made possible by the Brazilian Cryptocurrency Framework, which was enacted in June 2023. The amendments currently being discussed in the bill make reference to this framework, defining virtual assets as "digital representations of value that can be electronically traded or transferred and used for payment or investment."
In a related development, in August, a Brazilian congressional committee approved an amendment to a separate bill aimed at increasing taxes on cryptocurrencies held outside of Brazil's borders.
