Brazil Advances Bill to Regularize Undeclared Crypto Assets
On October 29, Brazil’s National Congress approved Bill 458/21. This bill sets a framework for citizens to regularize undeclared assets, including Bitcoin and other cryptocurrencies. Investors can declare crypto holdings by paying a 30% tax. The proposal now returns to the Senate for a final vote. It offers a one-time chance to declare legally acquired crypto assets omitted from past tax filings.
The bill creates the Special Regime for Asset Update and Regularization (REARP). It allows investors who failed to declare or undervalued digital assets to comply. The 30% charge splits into a 15% capital gains tax and a 15% fine. This applies to asset values as of December 31, 2024. The law also covers assets like real estate, vehicles, securities, and shares. These can be updated at a 4% tax rate. The official bill details are available here.
Brazil’s Growing Crypto Market Drives Tax Efforts
Brazil’s crypto economy is growing steadily. In early October, Chainalysis reported a transaction volume exceeding R$1.7 trillion. This figure covers mid-2024 to mid-2025 and shows a 109.9% annual increase. Most transactions involved stablecoins used for trading, remittances, payments, and business.
The rapid growth increases the urgency of the 30% regularization bill. It formalizes tax rules for undeclared Bitcoin and crypto assets.
Legal Clarity and Controversy Surround the New Bill
The REARP proposal brings clearer tax rules for crypto in Brazil. It shields investors from prosecution and offers a structured payment plan. Payments can be made over 24 months with interest tied to the Selic rate. The Selic rate, set by Brazil’s Central Bank, controls inflation and currently stands at 15% annually.
The bill could bring billions in tax revenue, supporting President Luiz Inácio Lula da Silva’s fiscal policies. It also reintroduces some provisions from the withdrawn Provisional Measure 1.303/25, which caused controversy earlier this year. That measure aimed to raise about R$20 billion but faced strong opposition from the crypto community.
Opposition lawmakers criticized the bill’s revival. Sóstenes Cavalcante of the Liberal Party called it a “shortcut to boost revenue.” Gilson Marques from Novo labeled it “an artifice to pass what Congress had already rejected.” Meanwhile, government supporters like Lindbergh Farias defended the move as necessary to restore fiscal resources for the 2026 budget.
For Brazil’s blockchain sector, the bill offers both progress and challenges. It clarifies tax duties and provides legal certainty. However, the 30% tax may deter smaller investors.
The Senate’s final vote will decide whether Brazil officially integrates cryptocurrencies into its tax system. If passed, this could mark a landmark step in regulating crypto in Latin America’s largest economy.
