Bitcoin Isn’t a Trade, It’s a Saving Plan — Brazilian Lawmaker Proposes Zero Tax for HODLers

Brazil Scraps Crypto Tax Exemption As MP Pushes Bill To Protect Bitcoin Holders

Crypto investors in Brazil are waking up to a tougher tax regime as the government rolls out new measures that end long-standing exemptions and introduce sweeping changes to how digital asset gains are taxed.

At the same time, a federal lawmaker is fighting back with a bill that proposes eliminating taxes for long-term Bitcoin savers.

New Rules Target Every Investor — Even the Smallest

From 12 June 2025, Brazil officially removed its R$35,000 monthly exemption, which had previously allowed individuals to earn limited crypto profits without triggering a tax bill.

Under the new policy, all crypto gains are taxable — regardless of size or transaction volume.

This means that even small-scale traders are now within the crosshairs of the tax authorities.

The measure is part of Provisional Measure 1303, a broader fiscal strategy by the government to ramp up revenue from financial assets.

A flat 17.5% capital gains tax now applies across the board to all crypto profits.

For those transacting between R$5 million and R$10 million, the rate stays at 17.5%, climbing to 20% for R$10 million to R$20 million and 22.5% for profits over R$30 million.

The tax covers both domestic and foreign assets, including self-custodied wallets, meaning storing coins outside Brazil or offline no longer offers any relief.

Losses from previous five quarters can still be used to offset gains, though that window will be narrowed from 2026.

Corporate entities, meanwhile, face tighter restrictions and are barred from using crypto to balance business losses.

Brazilian MP Seeks To Reverse Course On Crypto Taxes

As the new policy takes hold, Congressman Eros Biondini is pushing to undo much of it.

He has submitted a draft bill in the Chamber of Deputies that would scrap the clauses in the tax code that specifically target cryptoassets.

His proposal also calls for abolishing a 2023 law that laid out mechanisms for taxing crypto income.

According to a report from Livecoins, Biondini argues that taxing Bitcoin holders penalises citizens using the asset as a long-term, decentralised store of value.

He says Brazil should be supporting, not punishing, people who “are looking for a legitimate, safe, and sovereign store of value.”

Citing official Treasury data, he noted that Brazil’s tax-to-GDP ratio hit 32.32% in FY2024 — the highest in 15 years — and warned that adding further tax pressure during an “economically fragile” period would have damaging effects.

Biondini didn’t stop there.

In late 2024, he unveiled a proposal calling for Brazil to create a national Bitcoin reserve by converting up to 5% of its $372 billion international reserves into BTC.

He has also introduced a separate bill seeking to formally recognise Bitcoin as a strategic asset, granting legal tax exemptions to those who hold it and protecting citizens' rights to self-custody without relying on third-party wallets.

Can Biondini Rally Support For His Crypto Agenda?

The bill now faces its first hurdle — a review by a committee in the lower house.

If approved, it would move to the full Chamber of Deputies, and then to the Senate and Presidential office.

Both the Senate and President hold veto powers.

In a post on social media, Biondini urged the crypto community to rally behind his bill, suggesting that if the topic were to go viral, the lower house would feel pressured to reject efforts to increase crypto taxes.

He called on fellow parliamentarians to support his proposal, designed to defend taxpayers, industry players, and Brazil’s “economic sovereignty.”

He said Brazil, “instead of leading” the world in crypto adoption, is now “going against the grain,” criticising existing and future crypto tax laws for “penalis[ing] people who are looking for a legitimate, safe, and sovereign store of value.”

Crypto Tax Shift Reflects Global Momentum

Brazil’s new stance mirrors a global trend of governments tightening their grip on crypto.

India imposes a steep 30% tax on digital asset gains, while Japan and Denmark tax crypto profits at rates of up to 55%.

In contrast, jurisdictions like the UAE, El Salvador, and Bermuda maintain zero-tax environments to lure crypto talent and businesses.

Brazil’s move places it somewhere in the middle — more aggressive than it was, but less so than Asia’s high-tax examples.

Is Bitcoin A Threat To Sovereign Monetary Control?

At the heart of this conflict lies a bigger question: should governments treat Bitcoin like an ordinary investment, or as a parallel financial system that demands a different approach?

With Biondini pushing for Bitcoin to be formally recognised as a sovereign store of value, Brazil could become a case study in whether traditional tax frameworks can—or should—be applied to decentralised assets designed to operate beyond state control.