Crypto Regulation in Brazil May Change
Federal MP Paulo Martins has put forward a proposal to amend article 835 of the Brazilian Code of Civil Procedure, after the adoption of which cryptocurrencies can be used for payments and the powers of the courts will be expanded, providing the possibility of confiscation of digital assets.
The changes are proposed to allow the use of cryptocurrencies as a financial asset, a means of exchange or payment, as well as a tool for accessing goods and services or investments.
These changes will not make Bitcoin or any other cryptocurrency legal tender in Brazil, but it will become a legally recognized financial asset for investment and other purposes.
The proposal also spells out the powers of the judiciary in relation to cryptocurrencies, but access to the private key of users is prohibited.
The debtor will have to send their cryptocurrency payment to the court’s wallet to ensure its validity. The proposal does not mention how the court will receive cryptocurrency from self-hosted wallets.
For those who store their cryptocurrency on exchanges, the court will have the power to force “intermediaries” like exchanges to freeze the debtor’s crypto assets.