Brazil is Considering Removal of Tax on Renewable Bitcoin Mining

Source: CoinDesk

According to recent reports, Brazil considers making the tax zero on Bitcoin mining that uses renewable energy. This will change the BTC mining landscape in Brazil entirely.

The removal of taxes on renewable Bitcoin mining serves as an incentive. Zero tax for renewable mining in Brazil will mean importing software and machinery with complete tax exemption. This particular incentive is part of crypto regulations cooking in the south American country.

Brazil’s Cooking Crypto Bill

There are reports that Brazil is looking to make their Central Bank the regulator in matters Bitcoin and anything crypto. For the longest time, crypto critics have constantly pointed out the unregulated nature of digital assets. Similarly, the president of Brazil’s B3 stock exchange, Gilson Finkelsztain, has echoed these concerns in the past.

It seems that crypto regulatory woes may soon be over for the South American country. According to recent reports, there’s a crypto bill underway in Brazil. Last week, the bill made it to the Committee on Economic Affairs(CAE).

This was after Senator Irajá Silvestre Filho gave a favorable opinion on the proposals. The Senator is currently the rapporteur for a total of three Bitcoin-based projects.

On top of offering an incentive for renewable BTC mining, the bill is also seeking to give crypto coins a new status. According to the cooking bill, the Brazilian government will recognize crypto coins as currencies. Why would the country do such a thing? Recognition of crypto as currency means that the country’s Central Bank will regulate them.

The main aim of the cooking proposal is to combat money laundering crimes which is a persistent concern in the crypto trading industry. In addition, the bill seeks to make the whole trading process transparent for both the regulatory body and the client.

The Central Bank of Brazil as the Crypto Regulator

As mentioned above, Brazil’s crypto bill is seeking to make the country’s central bank the crypto regulator. On top of that, the bill proposes involving the Brazilian Securities Commission in regulatory issues. One of the regulatory issues that the commission will handle is positioning digital assets as securities.

With the central bank as the country’s crypto regulator, crypto coins will be viewed as currencies in Brazil accordingly. Consequentially, Brazil cryptocurrency exchanges will offer a wide array of financial services such as loans. Like many countries worldwide, Brazil views digital assets as a commodity like coffee or iron ore.

Brazil’s Tango with Cryptocurrency

In addition to the bill mentioned above, there’s an additional crypto bill awaiting approval. Brazil congressman Federal Deputy Luizão Goulart proposed this bill. The bill seeks to legalize crypto as a mode of payment for both private and public sector workers.

Additionally in the bill, there’s the suggestion to enable workers to ask for remuneration in crypto coins. The bill, however, warrants that employers will only make such a payment after a mutual agreement between them and the workers.