#182: Bolsonaro says he would vote against Drex
Plus: BRL1 stablecoin launches; Mercado Bitcoin ordered to suspend token sales
💡 If you haven't already be sure to check out Merge Buenos Aires, which takes place March 24-26 in the Argentine capital. The conference is an exciting opportunity to connect Europe and Latin America through Web3 and will provide a great pulse check on crypto adoption in the region. I'll be attending and I hope to see some of you there as well
Olá pessoal!
Welcome back to 🇧🇷Brazil Crypto Report for the week of March 10-14, 2025.
I passed through Sao Paulo last week, where I was able to record some banger podcast episodes in the BTG Pactual studios. Stay tuned in the coming weeks 👀
For Brazilian readers — please have a look at this new crypto journalism course created by formal Portal do Bitcoin editor Claudio Rabin.
🔎 What’s in BCR this week?
BRL1 stablecoin, backed by Mercado Bitcoin, Bitso, Foxbit, is live
Brazil to push blockchain-based BRICS payment system
Bolsonaro says he would vote against Drex on Flow Podcast
CVM orders Mercado Bitcoin to suspend “irregular” token offerings
Receita Federal announces new crypto tax reporting rules
Thanks for reading and have a great week!
- AWS
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🎙New Podcast!
For this week’s podcast I spoke to Merge founder and CEO Paula Pascual. We talk about her experience building the blockchain division at Santander in Madrid and why she decided to quit to build out Merge — a Web3 events brand that aims to connect Latin America with the rest of the world.
After a successful Merge Madrid event last October, she is bringing the brand to Buenos Aires later this month March 25-26. See you in BA!
🎧 You can find Brazil Crypto Report content wherever you listen to podcasts: Spotify | Apple Podcasts | Amazon | Anchor | YouTube
BRL1 stablecoin goes live
The real-pegged stablecoin was launched by a coalition of exchanges including Bitso, Foxbit and Mercado Bitcoin on the Polygon blockchain.
The coin will function as an easy way to transfer reals between crypto platforms in Brazil and overseas, thereby increasing speed, liquidity and integration.
Consortium exchanges will list the BRL1/BRL pair with no fees, meaning that that holders can buy, sell and move between exchanges at no cost.
Cainvest will provide liquidity for the BRL1/USDT and BRL1/USDC trading pairs, allowing quick access to dollarized stablecoins.
BRL1 is fully backed by reals and Brazilian government debt, and it will rely on Fireblocks for its custody and tokenization services.
Charles Aboulafia, CEO of Cainvest, said in a statement:
“BRL1 aims to build a more integrated and accessible digital asset market for Brazilians and global investors, offering a stable, secure digital asset with guaranteed liquidity, perfect for international transactions and for those seeking investments with confidence and solidity.”
Portal do Bitcoin CriptoFacil CoinTelegraph Brasil BeinCrypto
Brazil to push blockchain-based BRICS payment system
Brazil plans to use its BRICS presidency to advance the creation of an international payments system that uses blockchain. The proposal is different, however, from another proposal to create a common shared currency for the BRICS group.
The system would be used to increase efficiencies of import and export contracts, and to reduce payment costs between bloc countries.
The Brazilian government is keen to advance this agenda but is concerned about potential retaliation by the United States. A source speaking to Globo said the objective is not to weaken the dollar but rather to create more trade and capital flows.
Brazil began its rotating presidency of the BRICS nations in January of this year.
Portal do Bitcoin Valor Exame CriptoFacil
CVM orders Mercado Bitcoin to suspend “irregular” token offerings
The CVM, Brazil’s securities regulator, stated that the consortium quota tokens being launched and traded on Mercado Bitcoin are securities and ordered the suspension of these products.
The regulator said that these tokens are “backed by financial flows, originating from credit rights, granted by a Non-Standardized Credit Rights Investment Fund”, and therefore are “collective investment contracts in the securities market”.
Because MB is not authorized to act as a securities intermediary, it must suspend the 11 consortium fixed income tokens it currently lists. Non-compliance could result in a fine of up to R$100,000 per day.
MB said in a statement that it:
"ensures compliance with its activities and follows the guidelines of regulatory bodies as they are issued. As soon as it has access to the grounds, it will understand and evaluate the scope of the CVM's statement".
"[MB] has always acted in accordance with the 2020 CVM consultation and, subsequently, also with the new guidelines of the technical area of 2023.”
Valor Exame BlockNews BeinCrypto CriptoFacil
Bolsonaro says he would vote against Drex on Flow Podcast
Former president (and 2026 presidential hopeful) Jair Bolsonaro expressed concern over the Drex project during a wide ranging interview on the Flow Podcast (sort of like the Joe Rogan podcast of Brazil).
He expressed concern that financial infrastructure like Drex will be taken over by bad actors in government and used against the population. He said that he sides with Drex opponent Julia Zanatta, the Federal Deputy from Santa Catarina who has become vocal about the project recently.
“I would vote with Julia Zanatta contra Drex. Because the government would have the capacity to control you.”
Receita Federal announces new crypto tax reporting rules
Brazil’s revenue service announced new rules for its 2025 Income Tax Return process that directly impact crypto investors.
The changes aim to increase transparency on investments abroad while complying with the new Offshore Law. While the tax rate on crypto assets has not changed, investors with assets abroad may see their tax burden increase.
Taxpayers are now asked to declare the total value of their crypto assets on both December 31, 2023 and December 31, 2024, and then detail if there was a financial investment, loss, profit and indicate in which country the assets are located.
Specifically, a new mandatory field has been added to the declaration of investments section for those who have made investments abroad. This will allow Receita Federal to exercise more strict control over investments held outside of Brazil.
It is estimated that 46.2 million Brazilians will file income tax returns for 2025. Receita Federal data indicates that roughly 2.3 million individuals have investments overseas.
CoinTelegraph Brasil Livecoins BeinCrypto
🗞Brazil Crypto News Rundown
📈 Markets
Stark Bank, a Brazilian startup backed by Jeff Bezos, is positioning itself as a go-to banking provider for crypto companies. It’s currently working with 52 blockchain and crypto companies, such as Mercado Bitcoin, Transfero and Binance. (Valor)
Ronaldinho’s STAR10 memecoin remains at US$0.01 after plummeting 97% after launching. (CoinTelegraph Brasil)
Crypto trading platform and self-custodial wallet PicNic has enabled native bitcoin withdrawals with the most competitive price in the Brazilian market using Swaps.io — which enables transfers between EVM-compatible chains and the Bitcoin network. The platform also revamped its “Easy Income” passive income product to create a smoother experience for users. (CoinTelegraph Brasil)
Crypto exchange MEXC has enabled Pix deposits for Brazilian customers. (BeinCrypto)
Mercado Bitcoin and Polygon Labs are teaming up to tokenize US$200 million of assets this year. This would more than double the number of MB’s tokenized assets to date. Fabricio Tota, MB’s VP of New Business, said:
“This alliance consolidates us as one of the global leaders in tokenized assets. With Polygon's infrastructure, we can offer more competitive products, democratize access to investments and attract international capital.” (CoinDesk) (Portal do Bitcoin) (CoinTelegraph Brasil)
📲 Adoption
Metamask has partnered with Crypto Tax Calculator to provide a tool for Brazilian users to determine their crypto capital gains tax obligations. (CoinTelegraph Brasil) (CriptoFacil) (Livecoins)
Paraguay is becoming a popular destination for Brazilian bitcoiners who are seeking less state control. (Livecoins)
Cassio Gusson of CoinTelegraph Brasil reflected on the events of March 16, 1990, when then-president Fernando Collor de Mello announced on national television that he would be confiscating the savings and checking accounts of Brazilian citizens. He instantly blocked 80% of the money in circulation.
Meliuz wants to start a “wave of institutional adoption” of bitcoin among Brazilian companies, chairman Israel Salmen told Exame:
"We have a moral duty from now on to continue improving these products related to bitcoin in our ecosystem. We want to expand features with cryptocurrencies to the entire base. And opportunities related to bitcoin will certainly be created"
“I hope that we have opened the door for other companies to study the topic.”
The Drex consortium led by SFCoop has developed its own tool called Harpo to ensure the confidentiality of transactions. It becomes the 5th privacy tool to be deployed in the pilot to address the question of privacy, which has been the largest impediment to the project thus far. Márcio Alexandre, IT governance and architecture superintendent at SFCoop, said the goal is to not be dependent on suppliers for this service:
“It should not be a path for us to become dependent on a supplier, who can change the terms of the deal.” (Valor)
Stablecoin superapp El Dorado has integrated with BRLA Digital to allow Brazilian users to purchase USDT using reals via Pix. (CoinTelegraph Brasil)
Mercado Bitcoin announced the hiring of Fernanda Coutinho as its new VP of People and Culture. (BeinCrypto)
The Belo Horizonte city hall’s social channels were hacked to promote a Solana-issued memecoin. (Livecoins)
Stablecoins accounted for 39% of total purchases on Bitso in 2024, the exchange highlighted in its 2024 Latin America Crypto Landscape Report. (CoinTelegraph Brasil)
Fenasbac and the Central Bank of Brazil launched LIFT Data, a virtual program to stimulate open innovation. The objective is to encourage the use of public data to develop technological solutions for the financial sector. The first edition of the program will focus on sustainability. (CoinTelegraph Brasil)
Transfero Group has acquired a 30% stake in Crypto Investidor, a platform that provides financial education and market analysis for crypto. (CoinTelegraph Brasil) (BlockNews)
🏛 Policy, Regulation and Enforcement
Roberto Cardassi, creator of the BlueBenx crypto pyramid scheme, was extradited from Portugal to Brazil in February, Portal do Bitcoin confirmed. He fled Brazil after Bluebenx collapsed in November, 2022 and was detained in Portugal last July in the city of Braga.
Federal Deputy Eros Biondini spoke about his proposal to create a strategic bitcoin reserve in Brazil at an event in Belo Horizonte. He said:
“We are at the forefront of this proposal in the world, and we can guarantee Brazil's economic sovereignty. And let's not risk, after having been the first, with the slowness and bureaucracy, in addition to all the difficulties we know in Brazil, ending up being one of the last to actually put this into practice. That is why the support of the community and its participation in the processing of this project is essential.” (Livecoins)
Financial influencer Renato Trezoitão was also at the event and evangelized bitcoin to numerous politicians, including Nikolas Ferreira. (Livecoins)
Robinson Barreirinhas, secretary of the Receita Federal, argued that patrons of online betting sites must pay income tax on their winnings. His remarks came during a special congressional committee hearing on the betting website activities:
“My position is that the bettor should pay Income Tax, because the tax, in this case, does not have a revenue-raising function, it has a dissuasive function, of not encouraging gambling. It is like this all over the world. We are treating the bettor better than we treat a company with real profits in Brazil. It's crazy.” (CoinTelegraph Brasil)
A new bill was introduced in Brazil’s Congress by Federal Deputy Luiz Phillipe de Orleans e Bragança that seeks to regulate cryptocurrency salary payments in Brazil. The legislation “provides for the regulation of the payment of salaries, remunerations and labor benefits using virtual assets.” (CoinTelegraph Brasil) (Livecoins)
ABCripto suggested several changes to the Central Bank’s proposed crypto regulations in its comment submission. (CriptoFacil)
Federal Police launched Operation Flying Dutchman against a transnational criminal group specializing in cryptocurrency fraud and tax evasion that has moved R$4.1 billion in recent years. (CriptoFacil) (Livecoins)