Brazilian lawmakers propose to protect crypto from seizure

Brazilian lawmakers are considering a bill that would include cryptocurrencies in the list of assets protected from creditors’ seizure.

The bill, authored by Deputy Carlos Bezerra, aims to give cryptocurrency holders the same protection as personal savings, which are exempt from confiscation.

The paper is being discussed by the Committee on the Constitution, Justice, and Citizenship in the Chamber of Deputies of the National Congress of Brazil.

The bill is part of the Brazilian crypto framework, enacted in June 2023. It is regulating the use of digital assets in the country.

Brazil’s crypto landscape

Brazil has emerged as a prominent player in the cryptocurrency world, with a high adoption rate and a supportive regulatory environment. The country’s Securities and Exchange Commission has proposed changes to classify tokens as digital assets and securities, bringing them under regulations.

The support for cryptocurrencies in Brazil is further evidenced by a study conducted by Mastercard, which revealed that 49% of the country’s population has completed a crypto transaction in the last 12 months, surpassing the global average of 41%.

Additionally, Brazil legalized cryptocurrency as a payment option, providing a favorable environment for crypto projects to thrive.

Several reasons behind the rapid growth of the crypto industry in Latin America, including Brazil. One significant factor is the high number of unbanked citizens in the region.

As of early 2023, Brazil alone has over 30 million unbanked individuals, making cryptocurrencies an attractive alternative for financial transactions.