In Brazil, congress is discussing several proposals that would exempt cryptocurrency miners from taxes and elevate cryptocurrency to national currency status.
After the restrictions on cryptocurrencies in China, cryptocurrency miners migrated to countries that are welcoming to the cryptocurrency industry.
In this sense, Brazil has become one of the main countries preferred for cryptocurrency miners. In the South American country, which is trying to find friendly solutions for the crypto ecosystem, the congress opened important and striking proposals on cryptocurrencies for discussion.
In Brazil, where Bitcoin and other altcoins are treated as commodities, cryptocurrencies may be accepted as currency.
The draft also recommended that the Brazilian central bank be the main regulator to oversee the cryptocurrency market. Within the scope of this proposal, the Brazilian Securities Commission (CVM) will work and present it as a report to the congress.
Zero Taxes to Crypto Miners
The most crucial point of the draft presented at the Brazilian Congress was undoubtedly the "zero tax" proposal for crypto mining. In the draft presented, it is proposed to introduce a “tax exemption” for miners, provided that they can mine cryptocurrencies from renewable energy sources.
In an environment where environmental concerns from cryptocurrency mining are often discussed, the Brazilian government aims to promote low carbon emissions. In this context, Brazil plans to charge zero tax from miners producing with renewable energy sources.
Brazil currently produces just under half of its electricity from renewable sources, according to the International Trade Administration. The cost per kilowatt-hour is about $0.12, putting it roughly in the middle of the global pack in that regard.
Ray Nasser, CEO of Arthur Mining, has claimed that the country could become a global “mining hub” if the tax exemption on crypto mining is passed by the Brazilian Congress.
“There are so many energy companies in our country that we can supply renewable energy. The workforce here is much stronger than Paraguay and Argentina, and if tax advantages can be added to it, Brazil could benefit from the process.”