Brazil May Offer Tax Free Bitcoin Mining & Make Public Payments in Cryptocurrency

Brazil tops the country listed suggesting cryptocurrency future and making the blockchain technologies mainstream payment methods. This year, Brazil has remained active not just suggesting cryptocurrency payments and so on but also making the mining tax free and no duties on mining hardware imports. 

Brazil is one of the few countries that have been supporting cryptocurrencies for so long. Not just they are also supporting the rapidly increasing mining community in Brazil. The Federal Deputy Luizão Goulart, last month, suggested giving cryptocurrency payments a legal status and the future payments made to the workers should be in cryptocurrencies.

“The limits of the percentage of payment (remuneration) in cryptocurrencies will be of the worker’s free choice. Any imposition by the employer will be prohibited.”

May be the best news and some positive news has hit the papers as the Brazilian Congressman Senator, Irajá Silvestre Filhothe proposing no taxation clause on organisations that rely on sustainable energy resources to mine cryptocurrencies. There are many other things that he shows willingness to exempt taxation off. They include import of cryptocurrency mining rigs, any other hardware import related to crypto mining and also changing the status of cryptocurrency to make them proper currencies.  

The press release further states that if the cryptocurrency miners are given this leverage then the crypto exchanges in Brazil may be given the right to offer loans. 

One of the mining entities, Arthur Mining CEO, Ray Nasser believes that given the proposed tax concessions to the Brazilian mining community the miners from all over the world can come flocking and invest here making the country ‘Mecca for mining.’

The DeFi has always been put first by the Brazilian government. Just a month ago a report released by the Central Bank of Brazil stated that the worth of Brazilian investment in cryptocurrencies since January 2021 is around $4.2 billion, while in August the cryptocurrency purchase was $496 million while the highest ever cryptocurrency purchases were made during the month of May amounting around $756 million. 

“Since then these numbers have been falling (US$695 million in June and US$583 million in July), but they are still much higher than what was seen at the beginning of the year: in February cryptoactive purchases were US$386 million and in March, $357 million.”, stated the report that takes cryptocurrencies as part of the commercial balance of products.”

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