Brazil is on the edge of a potential financial shift as a proposed private member’s bill by MP Adriana Ventura could allow investment funds to venture into the world of cryptocurrency, including Bitcoin (BTC).

If passed, this move may transform Brazil’s financial sector by encouraging innovation and aligning the country with global trends.

The Vision Behind the Bill

Adriana Ventura, a São Paulo MP and member of the liberal/libertarian New Party (NOVO), introduced the draft bill to meet the “growing demand and interest in cryptocurrencies” from investment funds.

According to Ventura, the measure is designed to promote financial innovation and stimulate the development of advanced investment products that incorporate crypto assets.

“This measure could contribute to financial innovation,” Ventura stated, emphasising its potential to “encourage internal competition and boost creativity in the financial sector.”

What the Bill Proposes

The draft law seeks to allow investment funds registered in Brazil to legally acquire cryptocurrency from firms authorised to operate in the country.

Currently, institutional investors are prohibited from making direct crypto investments, despite the rapidly expanding retail crypto market in Brazil—the largest in Latin America.

Beyond crypto inclusion, the bill also aims to:

• Allow investors to offset losses.
• Raise the exemption limit for net gains in stock-related transactions.

Ventura highlighted that the proposal would help provide “a regulated and safe environment,” enabling funds to diversify their investment portfolios while maintaining regulatory oversight.

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Aligning with Global Trends

Ventura’s bill recognises cryptocurrencies as a legitimate asset class, reinforcing the competitiveness of Brazil’s domestic financial market.

“Letting investment funds include cryptocurrencies in their portfolios would align Brazil with the global trend of adopting these digital assets,” she explained.

Challenges and Prospects

However, passing the bill may face significant hurdles. NOVO holds only four seats in the Chamber of Deputies and a single seat in the Senate.

Despite this, the party has a stronger presence at the local level and won the governorship of Minas Gerais in 2022.

Moreover, Brazil’s growing crypto communities and progressive views from lawmakers at both national and local levels suggest a shifting tide in regulatory attitudes.

Regulators recently announced their intent to reform Brazil’s crypto tax laws, with plans to introduce new measures by the end of the first quarter of 2025.

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Looking Ahead

If Ventura’s bill gains adoption, it could mark a turning point for Brazil’s investment landscape, paving the way for innovation and increased competition in the financial sector.

For now, all eyes are on the lawmakers and regulatory developments that could shape the future of crypto investments in the nation.