This Country Just Proposed Tax-Free Bitcoin Mining

The latest update in the Brazilian Congress saw Senator, Irajá Silvestre Filhothe propose tax-free crypto mining for entities utilising sustainable energy for the process. Furthermore, the Senator also proposed for a tax exemption on import of cryptocurrency mining rigs, along with changing the status of cryptocurrencies, to a currency, instead of a commodity.

According to the report from a Brazilian media outlet, Seudinheiro, if these proposals are successfully passed then crypto exchange platforms in Brazil will also be allowed to facilitate financial services and issue loans. Ray Nasser, the CEO of Arthur Mining, claimed that if the tax exemption for crypto mining bill is passed in the Brazilian Congress, then the country could become a global “Mecca of mining.”

Brazil’s Long-Standing Pro-Crypto Stance

With one after another trademark, Brazil is rapidly expanding in the crypto sphere. Last month, Brazil’s Federal Deputy and congressman, Luizão Goulart, proposed to make crypto a legal form of payment for workers in both, public and private sectors. However, Goulart emphasised that the workers will have a choice, and a mandatory mutual agreement will be reached between the workers and the employer before crediting wages in form of crypto.

“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.”

However, this was not the first time Brazil’s government supported the decentralised industry. In the month of October, Brazil’s Central Bank published a report, declaring that the nation’s residents had bought $4.2 billion worth of crypto since January 2021. According to the report, while the latest purchase was registered in the month of August, amounting to $496 million, yet, the highest purchase of crypto actives was marked in May, when Brazilians bought $756 million in crypto.

“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.”