Brazil's cryptocurrency tax policy stirs up new waves. In October last year, the temporary measure bill MP 1303/2025 was rejected in Congress. This proposal originally aimed to strengthen taxation on cryptocurrency transactions.

The government's intention was clear — to increase revenue through the Ministry of Finance's strategy. The plan was to levy a 17.5% income tax on cryptocurrency transactions exceeding R$35,000, while also eliminating the existing R$35,000 tax exemption threshold. It sounds quite strict, but because the voting process was not completed within the stipulated deadline, the bill was ultimately rejected by Congress.

Good news for Brazilian investors — in 2026, the R$35,000 tax exemption limit will still be maintained. However, this topic has sparked considerable controversy in the parliament, with supporters of the proposal expressing strong dissatisfaction with the rejection, believing it missed an opportunity to optimize the tax system. As the cryptocurrency market fluctuates, similar policy discussions continue to emerge in various countries.