Bitcoin’s Unstoppable Rise: Navigating Taxes and Centralization

Bitcoin doesn’t ask for permission; it simply exists. And that’s what bothers some people.

Tax increases are never welcome, and the loss of exemptions is even worse. Investors understand this. However, recent events highlight a crucial point: even with these challenges, investors persist. We adapt. Taxes may be daunting, but they don’t halt momentum.

In the early days, Brazilian exchanges emerged from a revolutionary spirit. They were driven by genuine Bitcoin enthusiasts who believed in the technology, decentralization, and financial freedom. It wasn’t about lead capture or tokenizing everything. It was about disrupting the status quo.

Today, these same exchanges have transformed into centralized custody platforms, boasting user-friendly interfaces and lobbying power in the capital. They now operate within the very system they once sought to dismantle.

So, when the government considers eliminating the tax exemption on sales up to R$35,000 per month, what’s the response?

“If we don’t force sales through national exchanges, everyone will fail.”

But why would they fail?

Is it because they haven’t offered technical advantages, security, competitive products, or genuine user loyalty?

If so, the issue isn’t the R$35,000 limit. The real problem is the desire to retain investors through legal mandates, rather than superior service.

Herein lies the great irony of the crypto market: Bitcoin was created to eliminate intermediaries. Yet, for most, the entry point remains a centralized exchange.

The concept of a peer-to-peer asset, free from trusted third parties, clashes with the reality that Brazilians still rely on intermediaries to buy, sell, and even understand what they’re doing.

“Bitcoin wasn’t created to have an intermediary. Perhaps that’s the biggest challenge for exchanges: making themselves necessary in a system designed to function without them.”

For years, Brazilian exchanges have been lobbying Congress for “fairness” between domestic and foreign platforms.

What has this “fairness” achieved so far?

• Proposals requiring foreign exchanges to establish a presence in Brazil to comply with local tax regulations.
• Attempts to ban operations that Brazilians currently conduct freely abroad, such as futures markets.
• The elimination of tax exemptions for those operating overseas.

But now, “fairness” has backfired.

Based on this same principle of fairness, the tax exemption in Brazil has also been removed.

In other words, they’ve leveled the playing field by making things worse for everyone.

Ultimately, the plan backfired and hurt you, the investor.

Even with the offshore law removing exemptions for foreign exchanges, Brazilians continue to operate abroad. Bitfinex, Binance, Bybit, Kucoin… remain strong.

Therefore, taxes aren’t the only factor keeping investors in place.

If investors only use national exchanges for the R$35,000 exemption, perhaps the only problem for national exchanges isn’t the tax.

Consider a simple analogy: We used taxis because they were the only permitted option. Then came Uber. Despite attempts to block it through legislation, consumers made their choice.

Because at the end of the day, what Brazilians want is: 🔓 freedom of choice.

And freedom is earned through service, utility, and trust—not coercion.

Let’s be clear.

Yes, tax increases are bad. They always will be. But investors adapt, plan, and survive. They switch platforms, seek alternatives, learn, and evolve.

Now… To say that ending the exemption for national exchanges will break the Brazilian crypto market?

If the exchanges are failing, perhaps the market isn’t fragile—perhaps it’s the business model of those who depend on exemptions to survive.

The market continues, with fiscal packages, executive orders, and lobbying. But Bitcoin…

🚫 Bitcoin doesn’t stop. It doesn’t ask for permission. It doesn’t adjust. It happens.

And perhaps what’s truly unsettling is that simple, direct principle:

“Bitcoin: you’re in control.”

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