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Brazilian official proposes to allow the use of cryptocurrencies for payments

Brazilian Federal MP Paulo Martins has introduced a bill that proposes to expand the use of digital currencies in the country, as well as the powers of the courts to confiscate them.

Paulo Martins came up with a new billsupplementing existing laws, in particular Article 835 of the Code of Civil Procedure. The document states that although crypto assets are not a currency in and of themselves, they can be used as a financial asset, a medium of exchange or payment, as well as an investment and a tool to access goods and services.

If the bill passes, cryptocurrencies will not necessarily become legal tender in the country, but they can become a legally recognized financial asset for investment and other purposes. The draft law proposes to use BTC and ETH not only to pay for goods and services, but also to pay off debts, as well as to confiscate them from debtors by the court.

In particular, Martins proposes to allow Brazilian courts to freeze stock exchange accounts if necessary. However, at the same time, the official proposes to prohibit the court from accessing users’ private keys. In addition, the bill proposes to allow courts to force crypto exchanges to freeze debtors’ crypto assets.

“In the event that the debtor’s assets are not found, the creditor may apply to the court, which will require the intermediaries involved in the operation with crypto assets to be blocked,” the document says.

The proposed additions are at an early stage of discussion in the Chamber of Deputies of the country’s legislature. This means that it may take several more years before they are adopted. Earlier, the Brazilian Federal Reserve announced that citizens trading cryptocurrencies need to pay income tax, even if they do not convert digital currencies to fiat.

Source: Bits

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