• Brazilian lawmakers are working on a law that could see crypto enter the debtor’s protected assets list.
  • This means that significant crypto holdings might start being protected from seizures on behalf of creditors in the country.

Brazilian lawmakers are discussing a motion that seeks to grant strong protection to significant crypto savings as part of a bill to protect the savings assets of debtors.

Crypto may become part of debtors’ personal savings category protected from seizures in Brazil

Bill 4.420/2021, Written by Deputy Carlos Bezerra, has been tabled to the committee on the Constitution, Justice and Citizenship in the Chamber of Deputies of the National Congress of Brazil, seeking to amend the Code of Civil Procedure of 2015 to protect private savings of debtors equals to 40 minimum wages from potential seizure on behalf of their creditors.

The bill’s initial version did not include crypto assets but has now been rewritten to include tokenized assets as well. This discussion is a landmark in the crypto industry as governments are increasing their efforts to streamline the adoption and usage of these assets worldwide.

The new version of the bill refers to digital assets as

“Digital representations of value that can be traded or transferred via electronic means and used for making payments or investments.”

This legal development is not a set-apart event. In August, the Brazilian Congressional Committee approved amendments to a bill that seeks to raise taxes on crypto assets held overseas. Keep watching Fintech Express for more updates on crypto and other FinTech-related developments.