Brazil may soon recognize crypto as a means of payment. The proposed law won’t necessarily make crypto a legal tender in the country, but it’ll at least be legally recognized financial asset for investments and other uses. (Reporting via newarbrian)
for goods and services across the country. It could also be used to pay outstanding debts “in the event of offering or forced constriction” of crypto assets.”
The proposal also discusses the new powers and limitations that Brazilian courts would have once crypto is recognized as a financial asset, such as freezing exchange accounts.“The following rules will be observed: Access, by the Judiciary, to the users’ private key is prohibited.” A debtor would have to send their crypto payment to the court’s wallet to ensure its validity. The proposal does not mention how the court would obtain crypto from self-custodied wallets.
For those that keep their crypto on exchanges, the court would have the power to force “intermediaries” such as exchanges to freeze the debtor’s crypto assets: “In the event that the debtor’s assets are not located, the creditor may request the competent Court to issue an ex officio, by electronic means, to the intermediaries involved in operations with crypto-assets, so that assets corresponding to the amount executed are blocked.”The proposed additions are still in the initial phase of discussion in the Chamber of Deputies within the country’s legislature.