Brazil is currently proposing tax-free cryptocurrency mining | News Dec 12
According to official information from the latest update from the Brazilian Congress, Senator Irajá Silvestre Filhothe is proposing tax-free cryptocurrency mining to companies using sustainable energy for the process. In addition, the senator proposed exempting taxes on imports of crypto mining equipment and changing the status of cryptocurrencies into currencies instead of goods.
Brazil has just proposed tax-free crypto mining
Brazil leads the listed nation by proposing a crypto future and making blockchain technology the mainstream payment method.
Perhaps the best and some positive news hit the headlines when the Senator of the Brazilian National Assembly, Irajá Silvestre Filhothe, proposed not to impose taxes on organizations that rely on sustainable energy sources. There are plenty of other things he’s willing to do tax free. This includes importing cryptocurrency mining equipment, any other hardware import related to cryptocurrency mining and also changing the state of cryptocurrencies to convert them into currency.
“Limits on the percentage of payments (remuneration) in cryptocurrency will be the free choice of employees. Any imposition by the employer is strictly prohibited. “
According to a report by the Brazilian media company Seudinheiro, if these proposals are passed successfully, cryptocurrency exchanges in Brazil will also be allowed to facilitate financial services and the issuing of loans. Ray Nasser, CEO of Arthur Mining, stated that if the tax exemption for the cryptocurrency mining law is passed in Congress of Brazil, the country could become a “mining Mecca” worldwide.
The press release added that cryptocurrency exchanges in Brazil could be eligible to provide loans if crypto miners were offered this leverage.
One of the miners, Ray Nasser, CEO of Arthur Mining, believes miners from all over the world can flock to the Brazilian mining community with the proposed tax breaks and invest to turn the country into a “mining Mecca”.
Brazil has long been crypto-friendly
DeFi has always been put first by the Brazilian government. Just a month ago, a report released by the Brazilian central bank said that the value of Brazil’s investments in cryptocurrencies was around $ 4.2 billion in January 2021, while cryptocurrency purchases in August were $ 496 million during this the highest crypto purchases ever made in the US, the month of May totaled around $ 756 million.
“Since then, those numbers have dropped to $ 695 million in June and $ 583 million in July), but they’re still much higher than they were at the beginning of the year: on October 2, crypto trading was $ 386 million. And in March, $ 357 million. “
Brazil is rapidly expanding in the cryptocurrency sector. Last month, Brazil’s Deputy Federal Minister and Congressman Luizão Goulart proposed making cryptocurrencies a legal form of payment for workers in both the public and private sectors. However, Goulart stressed that workers have a choice and a mutually binding agreement is reached between the worker and employer before wages are credited in cryptocurrency.
However, this is not the first time the Brazilian government has supported decentralized industry. In October, Brazil’s central bank released a report claiming that residents of the country have purchased $ 4.2 billion worth of cryptocurrencies since January 2021. According to the report, when the last purchase was registered in August, up to $ 496 million. However, the highest level of cryptoactive purchases was recorded in May when Brazilians bought $ 756 million in crypto.
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