Brazilian Congressman Questions Finance Minister on Bitcoin Derivatives Regulation
A Brazilian congressman is pushing for greater clarity on the potential regulation of Bitcoin and cryptocurrency derivatives in Brazil. Federal Deputy Sóstenes Cavalcante (PL-RJ) has formally requested information from Finance Minister Fernando Haddad regarding the possibility of regulating this market.
Cavalcante’s inquiry, submitted to the Chamber of Deputies, seeks details on studies, economic estimates, and regulatory analyses concerning the potential regulation of cryptocurrency derivatives in Brazil. He is particularly interested in understanding the potential tax revenue and the impact on fiscal policy.
“Requer ao Excelentíssimo Senhor Ministro de Estado da Fazenda, Sr. Fernando Haddad, informações sobre estudos, estimativas e análises econômicas e regulatórias acerca da eventual regulamentação do mercado de derivativos referenciados em ativos virtuais no Brasil, bem como seu potencial arrecadatório e impacto na política fiscal,”
Protecting Investors and Boosting Revenue
Cavalcante argues that a regulated cryptocurrency derivatives market would fill a significant regulatory gap in Brazil. He believes it would enhance investor protection and increase federal tax revenue.
“A ausência de regulamentação para o mercado de derivativos referenciados em ativos virtuais no Brasil representa uma lacuna regulatória relevante, tanto sob o ponto de vista da proteção ao investidor quanto da arrecadação tributária federal. Em mercados maduros, como Estados Unidos e Singapura, tais instrumentos financeiros já são regulados e representam uma fração significativa do volume de negociação de ativos digitais,”
He emphasizes that regulation aligned with principles of economic freedom could improve Brazil’s international image.
Current Regulations and Future Possibilities
Currently, the Brazilian cryptocurrency market is governed by Law 14.478/2022 and Normative Instruction 1.888/2019 from the Federal Revenue Service. A provisional measure concerning investments and cryptocurrencies is under consideration in Congress, which could introduce stricter requirements for investors starting in 2026.
However, existing regulations do not permit platforms to offer cryptocurrency derivatives trading to Brazilian users. The Securities and Exchange Commission (CVM) has been closely monitoring such offerings and has issued cease and desist orders against exchanges in the past.
Another Congressman Seeks Information
It’s worth noting that Federal Deputy Luiz Philippe de Orleans e Bragança (PL-SP) has also requested information from the Finance Ministry regarding the regulation of Bitcoin derivatives.
The Path Forward
Cavalcante’s request must first be approved by the Chamber of Deputies before being forwarded to the Finance Ministry. This move signals a growing interest among lawmakers in regulating the cryptocurrency market for fiscal purposes. The Finance Minister’s response will be closely watched by the cryptocurrency industry and investors alike.
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