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<p>Brazil’s National Congress approved Bill 458/21 on October 29, advancing a framework that allows citizens to regularize undeclared assets, including Bitcoin and other cryptocurrencies, by paying a 30% tax. The proposal has now returned to the Senate for a final vote, offering investors a one-time opportunity to declare crypto holdings acquired legally but omitted from previous income tax filings.</p>
<p>Under the new Special Regime for Asset Update and Regularization (REARP), investors who failed to declare or undervalued their digital assets can bring them into compliance. The 30% total charge is split between a 15% capital gains tax and a 15% fine, applicable to the market value of assets as of December 31, 2024. The <a href="https://www.camara.leg.br/proposicoesWeb/fichadetramitacao?idProposicao=2279186" target="_blank" rel="noopener noreferrer nofollow">law</a> also extends to other assets like real estate, vehicles (land, sea, and air), values, securities and shares in the Income Tax, which can be updated at a lower 4% rate.</p>
<h2 class="wp-block-heading" id="government-targets-revenue-in-brazil-s-crypto-surge">Government targets revenue in Brazil’s crypto surge</h2>
<p>Brazil’s crypto economy is expanding at a progressive pace in the region. In early October, blockchain analysis firm Chainalysis reported that transaction volume <a href="https://www.cryptotimes.io/2025/10/02/brazils-crypto-transactions-reach-r-1-7-trillion-doubling-in-one-year/" target="_blank" rel="noopener noreferrer nofollow">surpassed R$1.7 trillion</a> between mid-2024 and mid-2025, a 109.9% annual increase.&nbsp;</p>
<p>The majority of this activity came from stablecoins, used not only for trading but increasingly for remittances, payments, and business transactions.</p>
<p>Amid this expansion, urgency is growing around the new 30% regularization bill, which formalizes tax treatment for undeclared Bitcoin and crypto holdings.</p>
<h2 class="wp-block-heading" id="a-path-to-legal-clarity-for-crypto-investors">A path to legal clarity for crypto investors</h2>
<p>The REARP proposal marks Brazil’s clearest move yet toward defining how crypto assets fit within its tax system.&nbsp;</p>
<p>For digital asset holders, the measure provides both a legal shield against tax crime prosecution and a structured pathway to compliance, with payment options spread across 24 months and interest tied to the Selic rate, which is the Brazilian economy’s <a href="https://www.bcb.gov.br/controleinflacao/historicotaxasjuros" target="_blank" rel="noopener noreferrer nofollow">basic interest rate</a>, set by the Central Bank to control inflation, now at 15% a year.</p>
<p>The initiative could generate billions in new tax revenue, reflecting Brazil’s President Luiz Inácio Lula da Silva’s fiscal tightening efforts.</p>
<p>Meanwhile, the inclusion of previously rejected <a href="https://www.congressonacional.leg.br/materias/medidas-provisorias/-/mpv/169059" target="_blank" rel="noopener noreferrer nofollow">provisions</a> from Provisional Measure (MP) 1.303/25, which aimed to raise around R$20 billion through higher tax collection, triggered heated debate.&nbsp;</p>
<p>That decree, withdrawn earlier this year after investor backlash, had alarmed the crypto sector for potentially increasing taxation on trading gains and restricting loss offsets.</p>
<h2 class="wp-block-heading" id="political-fallout-a-government-maneuver">Political fallout: “A government maneuver”</h2>
<p>Opposition lawmakers accused the government of reviving a failed tax decree through the back door.&nbsp;</p>
<p>Liberal Party leader Sóstenes Cavalcante (RJ) denounced the move as a “shortcut to boost revenue,” while Gilson Marques (Novo-SC) called it “an artifice to pass what Congress had already rejected.”</p>
<p>Government allies, including Lindbergh Farias (PT-RJ), defended the inclusion, arguing that it restores the lost fiscal capacity needed for the 2026 budget.</p>
<h2 class="wp-block-heading" id="legalization-with-a-price-tag">Legalization with a price tag</h2>
<p>For Brazil’s blockchain industry, the bill’s approval is both a milestone and a caution. On one hand, it clarifies tax obligations and provides legal protection for the <a href="https://www.cryptotimes.io/2025/09/24/brazils-central-bank-meets-binance-and-abtoken-on-crypto-rules/" target="_blank" rel="noopener noreferrer nofollow">Central Bank and compliant investors</a>. On the other hand, it sets a steep entry price: a 30% levy that could discourage smaller holders.</p>
<p>The Senate’s final vote will determine whether Brazil formalizes what many see as a de facto legalization of Bitcoin and crypto holdings.&nbsp;</p>
<p>If approved, it could mark a turning point for Latin America’s largest economy, one where crypto assets officially enter the national tax framework, and regulatory oversight takes precedence over informal adoption.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>Also read: <a href="https://www.cryptotimes.io/2025/10/29/nubank-overtakes-petrobras-as-brazils-most-valuable-firm/" target="_blank" rel="noopener noreferrer nofollow">Nubank Overtakes Petrobras as Brazil’s Most Valuable Firm</a></p>
</blockquote>

Brazil Proposes 30% Regularization Tax for Crypto Holders

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