Brazilian lawmakers to protect cryptocurrency assets from debt collectors

Brazilian lawmakers are discussing a separate initiative that seeks to include crypto in the latest version of a bill that would grant strong protection to a significant portion of debtors’ savings assets.

Authored by Deputy Carlos Bezerra, Bill 4.420/2021 is currently being considered by the Committee on the Constitution, Justice, and Citizenship in the Chamber of Deputies of the National Congress of Brazil. Amending the Code of Civil Procedure issued in 2015, it aims to protect the private savings of individuals up to an amount equal to 40 minimum wages from potential seizure on behalf of their creditors.

Some lawmakers are exploring ways to legally classify cryptocurrencies as personal savings, which would protect them from seizure by creditors.

The bill’s rapporteur, Deputy Felipe Francischini, officially confirmed on September 15 its agreement with a recent amendment suggestion from Deputy Fernando Marangoni to include crypto assets in the list of protected funds. 

According to Francischini’s note:

“Nowadays, people’s investment behavior has changed, with the traditional savings account losing ground to other forms of financial investment.”

Such inclusion became possible after the Brazilian crypto framework was enacted in June 2023. The current amendment refers to this framework, defining virtual assets as “digital representations of value that can be traded or transferred via electronic means and used for making payments or investments.”

Meanwhile, a Brazilian congressional committee approved recent amendments to a bill aimed at raising taxes on cryptocurrencies held overseas.

Read also: 

Xeenon, a web3 streaming platform, to shut down

Mina becomes the first non-EVM protocol  on MetaMask Snaps