#211: Congress strikes down controversial crypto tax increase
Plus: OranjeBTC lists on B3 exchange, becoming Latam's largest DAT
Olá pessoal!
Welcome back to Brazil Crypto Report for the week of October 6-10, 2025.
I hope everyone’s crypto portfolios are somewhat intact after a rough weekend. I honestly didn’t realize so many people were using leverage to gamble on altcoins. You have to be careful with this stuff - sure you can 50x your gains and what not but you can be completely wiped out instantly when shocks like this happen
On to the news, I was privileged to be able to attend the listing ceremony for OranjeBTC at the B3 last Tuesday. Oranje is now the largest bitcoin treasury company in Latin America and the 25th or 26th largest in the world depending on what source you’re using.
It was definitely a watershed moment for bitcoin adoption in Latin America and I was honored to be a part of it. You can see me in the image below - though I forgot to look up when they were taking this picture 💀
👊 Jump into the BCR English language Telegram group if you’d like to continue the conversation
📰 Top Stories this Week
Coinbase launches “Real in Therapy” marketing campaign promoting crypto as a hedge against inflation
Crypto lobby defeats controversial tax increases
OranjeBTC debuts on B3 exchange
Caixa Economica to launch first crypto fund with Hashdex
Thanks for reading and have a great week!
- AWS
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Coinbase launches “Real in Therapy” marketing campaign
Coinbase rolled out a provocative marketing campaign titled “Real in Therapy - A New Future for Your Money” that personifies Brazil’s currency as a patient suffering from an inflation disorder.
Part of the cure to the disorder, the ads suggest, is to diversify into cryptocurrencies - particularly bitcoin.
The campaign debuted on October 6 across streaming platforms and digital ads.
Fabio Plein, Coinbase’s head of Brazil and the Americas, said the initiative was developed specifically with Brazilian culture and humor in mind.
“We chose to relate the campaign to an increasingly common practice: therapy, to reinforce Coinbase’s solid and secure attributes, as well as the advantages of investing in crypto. As a campaign developed 100% in Brazil, we couldn’t do it without the traditional Brazilian sense of humor.'“
CoinTelegraph Brasil Portal do Bitcoin BlockNews
Crypto Lobby Defeats Controversial Provisional Measure
In a dramatic turn of events, Brazil’s Chamber of Deputies struck down Provisional Measure 1303 which would have, among other things, raised taxes on cryptocurrency gains.
Provisional Measure 1303 (MP), introduced by Brazil’s Finance Ministry in July, sought to remove the R$35,000 monthly de minimis exemption on capital gains from crypto transactions and institute a single 18% tax rate on all profits.
The MP, which sought to implement a basket of other changes to tax rules outside of crypto, was approved at the committee level but then rejected by a 251 to 193 vote in the lower chamber, marking a major defeat for Finance Minister Fernando Haddad and the Lula government.
The Finance Ministry expected to increase tax receipts by R$35 billion annually via the PM. The measure required approval by Congress to avoid expiration.
With the rejection of the measure, the exemption and current progressive tax structure remains in place.
The defeat was met with great fanfare by Brazil’s crypto industry, which viewed the removal of the R$35,000 monthly exemption as being highly damaging to small investors.
ABFintechs said in a statement:
“The entity views the reversal of Provisional Measure 1,303 as a positive outcome, resulting from a joint effort by various economic sectors. The institution believes that the creation or increase of taxes through a provisional measure lacks adequate debate and predictability, especially given the short timeframe this instrument imposes for discussing sensitive and highly impactful market issues.”
Vanessa Butalla, Chief Legal, Compliance & Risk Officer at Mercado Bitcoin, told Portal do Bitcoin that maintaining the exemption will simplify the experience for retail investors:
“It simplifies transaction execution, especially for small investors, who account for over 90%. They can transact within this monthly limit of R$35,000, without the need to constantly calculate and pay taxes, which adds additional complexity for those operating in this market.”
Bernardo Srur, CEO of ABCripto, said in a statement:
“The failure to approve MP 1,303 is a victory for common sense and dialogue. It shows that Brazil has the maturity to discuss public policies transparently, listening to the impacted sectors and seeking balanced solutions.”
The crypto lobby was frantically scrambling in Brasilia last week urging deputies to vote against the measure, as were unrelated groups like the agribusiness caucus and other centrist groups, ultimately exposing fault lines in Lula’s governing coalition.
Valor reports that the the defeat of the PM led to tensions erupting between the Lula government and Sao Paulo governor Tarcisio de Freitas. Lula’s PT accused Tarcisio of working behind the scenes with centrist politicians to block the proposal.
There remain concerns that the Lula government will pursue its desired tax changes through other avenues - either via legislation, a decree or some other measure.
OranjeBTC debuts on B3 exchange
OranjeBTC became the first company listed on B3 to hold its entire balance sheet in bitcoin. The company’s shares began trading on the exchange last Tuesday, coinciding with the announcement of a fresh 25 BTC purchase, bringing its total reserves to 3,675 BTC - roughly US $260 million.
Oranje’s strategy mirrors that of Michael Saylor and Strategy in the US. Guilherme Gomes, CEO of OrangeBTC, explained that the company is already leveraged in bitcoin via an interest-free debt mechanism that is novel for the Brazil market:
“Ours is the first interest-free debt in the country’s history, for five years, earmarked for the purchase of Bitcoin. It’s a small debt, approximately R$128 million.
This transaction was important to demonstrate how innovative financial mechanisms can be used within this new economy. It’s a five-year, interest-free debt, with no monthly or annual payments, and without any covenants—that is, there are no early redemption or margin call clauses.”
Gomes explained the need for a company like this in Brazil:
“Speaking about Orange, I think this represents significant progress, but there is also a broader aspect, which involves Brazil and all of Latin America. These emerging economies face profound monetary challenges. Our local currencies are not global stores of value—the world’s store of value is still the dollar.
Bitcoin, in turn, is emerging as an alternative, still in its infancy, but increasingly relevant, especially in a scenario of inflation and monetary debasement.”
In addition to expanding its bitcoin treasury, he added that the company in the future will focus on educational initiatives and expanding access to bitcoin in Brazil and eventually the rest of Latin America.
The company commemorated by taking out a full page ad on the front of Valor, Brazil’s leading finance newspaper.
You can read a full analysis from Banco Itau about Oranje here, in which it describes Oranje’s stock price as “entirely tied” to the price of bitcoin.
Valor CoinTelegraph Brasil Portal do Bitcoin CriptoFacil InfoMoney Exame
Caixa Economica to launch first crypto fund
Brazil’s state-owned bank Caixa Economica Federal has revealed plans to open its first crypto-asset fund, allowing institutional and qualified investors to gain exposure to crypto through a regulated vehicle.
The fund was created in partnership with Hashdex and aims to replicate the performance of the Nasdaq Crypto Index. It will be open to the general public with a minimum initial investment of R$100,000.
Humberto Magalhaes, CEO of Caixa Asset, said:
“Our goal is to enable CAIXA clients to access this trend in a simplified manner, through regulated investment. It’s another way to diversify investment options and participate in this technological evolution that is transforming the financial market, attracting a more risk-averse audience, including young people.”
CoinTelegraph Brasil Portal do Bitcoin CriptoFacil Valor BlockNews Exame
🗞Brazil Crypto News Rundown
📈 Markets
Brazil’s National Treasury and Central Bank have formally shut down a proposal to include bitcoin in the country’s reserve portfolio, arguing that the idea conflicts with the nation’s fiscal and monetary policy framework and could create market instability. (CoinTelegraph Brasil)
A new survey by Altside shows that one in four crypto investors in Brazil now holds more than R$1 million in assets, underscoring the growing wealth concentration and maturity of the country’s digital asset market. (Exame)
Méliuz, a Brazilian cashback platform-turned-bitcoin treasury company, has launched a new round of share repurchases (up to 5% of outstanding shares) amid a wave of investor enthusiasm for crypto-linked equities following OranjeBTC’s debut. (CoinTelegraph Brasil)
Brazilian payments company SmartPay, founded by crypto pioneer Rocelo Lopes, has been acquired by Rezolve AI, a Nasdaq-listed AI company. SmartPay has to date processed more than US$1 billion in USDT transactions. Lopes said in a statement:
“Smartpay has already proven that digital assets can move at the speed of commerce. By joining forces with Rezolve, we can take this model to global scale, enabling merchants to eliminate fees, consumers to pay instantly, and the entire ecosystem to benefit from the real-time exchange of value across borders.” (CoinTelegraph Brasil) (Portal do Bitcoin) (BlockNews)
Brazil’s stock exchange B3 has launched its first national trading championship featuring Bitcoin, Ethereum, and Solana. (CoinTelegraph Brasil)
Brazil’s crypto market saw a pullback in liquidity and trading volume during the month of September across all major cryptocurrencies, according to data from Biscoint. (CoinTelegraph Brasil)
📲 Adoption
Brazilian proptech firm Netspaces is expanding its real-estate tokenization platform to over 200 cities, allowing investors to buy fractionalized property tokens backed by real assets. (CoinTelegraph Brasil)
A Brazilian university student won a national academic award after submitting his thesis under the pseudonym Satoshi Nakamoto. (Portal do Bitcoin)
Visa announced Antonia Souza as director of digital assets for Latin America and the Caribbean. (BlockNews)
Tune.Bank, a fintech created by TuneTraders, announced plans to distribute R$7m to more than 13,000 artists in the country, with the goal of expanding access to fair credit, advance royalties and immediate liquidity using blockchain. (CoinTelegraph Brasil) (BlockNews)
A new Standard Chartered study warns that emerging markets could lose up to US$1 trillion in capital flows to U.S.-issued digital dollars by 2028, as stablecoins and tokenized dollar assets accelerate global dollarization and threaten local monetary autonomy. (Exame)
Former Central Bank president Roberto Campos Neto argued in a Folha de S. Paulo column that cryptocurrencies directly inspired the creation of both Pix and Drex, noting that digital assets helped shape Brazil’s approach to financial innovation and real-time settlement infrastructure.
Brazil’s Central Bank is advancing plans to internationalize Pix, with nine countries already in talks to integrate or replicate the instant payments system. (CoinTelegraph Brasil)
Banco do Brasil vice president Carlos Motta said that traditional banks must “reinvent themselves every day” to stay competitive amid fintech and blockchain disruption. (Exame)
Brazil is set to deploy its first quantum computer by 2026 via a partnership between the Ministry of Science, Technology and Innovation, the National Laboratory of Quantum Technologies and private-sector research partners. It is part of Brazil’s broader National Quantum Strategy. (CoinTelegraph Brasil)
🏛 Policy, Regulation and Enforcement
Glaidson Acácio dos Santos, aka the “Pharaoh of Bitcoins” and founder of GAS Consultoria, has been sentenced to 19 years in prison for murder and bribery of police officers, adding to a string of criminal cases tied to one of Brazil’s most infamous crypto pyramid schemes. (CoinTelegraph Brasil) (Portal do Bitcoin) (CriptoFacil)
Jonas dos Santos, accused of acting as a front for the so-called “Sheikh of Bitcoin”, admitted in court that he lent his name to companies tied to the alleged pyramid scheme. (Portal do Bitcoin)