Brazil lawmaker pushes to scrap crypto tax on Bitcoin holders

Brazilian lawmaker Eros Biondini has introduced a draft bill aiming to eliminate cryptocurrency taxes, especially for those holding Bitcoin as a long-term store of value. The proposal seeks to repeal clauses in the tax code and a 2023 law that currently require income tax on crypto profits.

The bill will be reviewed by a committee in the Chamber of Deputies before potentially moving to the Senate and the President, who both hold veto powers.

Biondini argues that new taxes on financial transactions, including foreign exchange and insurance, are poorly timed amid economic fragility. He highlights that Brazil’s tax burden reached its highest in 15 years, amounting to 32.32% of GDP in 2024.

The lawmaker criticised the government for opposing crypto adoption, claiming that existing and proposed tax laws unfairly penalise people seeking safe, sovereign stores of value.

Previously, Biondini also pushed for formal recognition of Bitcoin as a strategic store of value in Brazil. His earlier proposal would exempt Bitcoin holders from tax and confirm their right to self-custody without intermediaries.

In November last year, he unveiled a plan to allocate up to 5% of Brazil’s $372 billion international reserve fund into Bitcoin, signalling a bold approach to national economic sovereignty.

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