Brazil Congress considers proposal to exempt tax on renewable mining

Brazil’s Congress is set to look at several proposals around cryptocurrencies as per local reports. As part of the proposal, the central bank of the country is suggested as the main regulator to oversee the crypto market. However, the Brazilian Securities Commission (CVM) can also overlook certain aspects of the sector.

Apart from that, the report also indicated that cryptocurrencies should be regarded as currencies. As currently, Bitcoin (BTC) among other assets is akin to a commodity like precious metals and oil in Brazil.

However, a major change might come for the mining industry if the proposals are passed. The proposal also provides for tax exemption on imports of computers with mega processing capacity used in mining.

There is also a condition for “zero rate” exemption if mining is carried out from renewable energy sources. This decision comes on the back of environmental concerns that are often debated in the crypto mining sector.

Brazil to become “Mining Mecca”?

Ray Nasser, CEO of mining company Arthur Mining, told the local media that if the zero rate law is passed, Brazil could become a Bitcoin “mining Mecca” of the world. He stated,

“With the demand, there is today, with the numerous energy companies we have in the country — although the cost is not the cheapest — and with these rates going to zero, we will have a much more reliable jurisdiction, and the workforce here it is much more solid than that of Paraguay and Argentina.”

In Brazil, several banks have dived into the crypto front. Some time back, Latin American e-commerce giant MercadoPago is also announced that it will offer crypto investments to its Brazilian customers soon. The report quoted the company’s vice president Tulio Oliveira that the broader rollout is expected shortly after a smaller pilot was introduced earlier in November.

Recently, Brazilian congressman Luizão Goulart had also proposed allowing crypto-payments for employees in the country. At the time, he had argued it can be used to harness the benefits of the technology and bring in the advantages of decentralization.

The central bank’s figures revealed that Brazilians bought crypto worth $ 4.27 billion between January and August this year. However, according to some industry players, there are some existing gaps in the financial sector, despite proactive efforts.