Brazilian authorities have invited proposals for technical solutions that allow better detection and tracking of digital asset transactions in the country, according to one notice Published by the Brazilian Ministry of Justice and General Security.
The message was sent out via Comprasnet, Brasil’s tender platform for online procurement. It asks for suggestions for “software to find transactions for tracking, tracking and crypto assets based on blockchain” to help in the government’s fight against crime.
The message contains some details of exactly how the solution is intended to work. It says the solution must be able to track BTC, ETH, etc, TRX, BNB, Dash, Dogge, XRP, Matic and Avax. It also says that the tracking must contain IP addresses as well as the city and the country for the transactors.
In particular, the invitation mentions that the software would be delivered to a group of the country’s federal capitals but not the largest cities of Sao Paulo and Rio de Janeiro.
It is difficult to discern exactly what this signals about Brazil’s intentions for Digital asset control. The country has had a whipsaw relationship with the industry, especially BTC.
Brazil is one of the fastest growing digital asset markets in the world. According to Statista, income From Brazil’s digital asset market is expected to amount to $ 3.3 billion this year, with user penetration that will reach 13.82%. From 2023 to 2024 paid the amount of digital assets for imports for imports jumped 40% to $ 1.42 billion, up from $ 1.03 billion.
On the government’s side, the handling of the digital asset issue has clearly been a priority, and progress is made in several branches of government to develop the legal landscape of digital assets.
In May, the Supreme Court of Brazil controlled that courts can sue digital assets to track and seize digital assets held by debtors. It would make digital assets a much less appealing alternative for anyone trying to protect funds from creditors and potentially give global asset trackers another lever to conduct digital assets in jurisdiction.
However, there are still divisions within the government how to best approach digital asset legislation.
Last week is the country’s finance ministry introduced massive changes to How digital assets are taxed. At present, Brazil has $ 35,000 capital gains exception threshold, which means that the retailers can largely avoid tax when dealing with modest amounts of digital assets. According to the new proposals, the exemption would be replaced by a flat tax of 17.5% on all capital gains from digital assets.
The move met with arts from other corners of the Brazilian government. Federal Vice Gustavo Gayer responded by introduction A proposal for the legislative decrees that would nix the move. When he presented this decree, Gayer accused the executive government of exceeding its constitutional authority.
Similarly, Brazilian legislator is Eros Biondinin proposed Legislation that would free digital assets from taxation and lead the government to set up a Bitcoin reserve.
The spatter takes place when the Brazilian digital asset industry is waiting for a rule from the central bank in Brazil. The legislation was adopted in 2022 laying the foundation for regulating the industry, including license procedures and penalties for lack of compliance, by giving the legislation to the central bank. These rules were originally expected in 2024, but have been pushed Till sometime this year. A new round of public consultation ended as late as February.
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