06-24-2025 
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Brazilian authorities have invited proposals for technological solutions that allow for better discovery and tracking of digital asset transactions in the country, according to a notice published by the Brazilian Ministry of Justice and Public Security.
The notice was sent out via ComprasNet, Brazil’s online procurement bidding platform. It asks for proposals for ‘software for locating, tracking and crypto asset transactions based on the blockchain’ to aid in the government’s fight against crime.
The notice contains some specifics as to precisely how the solution is intended to work. It says that the solution must be capable of tracking BTC, ETH, ETC, TRX, BNB, DASH, DOGE, XRP, MATIC, and AVAX. It also says that the tracking must include IP addresses as well as the city and country of the transactors.
Notably, the invitation mentions that the software would be delivered to a group of the country’s federal capitals but not the largest cities of Sao Paulo and Rio de Janeiro.
It is difficult to discern exactly what this signals about Brazil’s intentions for digital asset regulation. The country has had a whipsaw relationship with the industry, particularly BTC.
Brazil is one of the fastest-growing digital asset markets in the world. According to Statista, revenue from Brazil’s digital asset market is expected to reach $3.3 billion this year, with user penetration set to reach 13.82%. From 2023 to 2024, the amount of digital assets paid for imports jumped 40% to $1.42 billion, up from $1.03 billion.
On the government’s side, addressing the digital asset question has clearly been a priority, and progress is being made in multiple government branches to progress the legal landscape for digital assets.
In May, the highest court in Brazil ruled that courts can subpoena digital assets exchanges to track and seize digital assets held by debtors. It would make digital assets a much less appealing option for anyone seeking to shelter funds from creditors and potentially give global asset tracers another lever to pursue digital assets in the jurisdiction.However, there are still divisions within the government as to how best to approach digital asset legislation.
Last week, the country’s Finance Ministry introduced massive changes to how digital assets are taxed. Currently, Brazil has R$35,000 capital gains exemption threshold, allowing retail traders to largely avoid tax when dealing in modest amounts of digital assets. Under the new proposals, that exemption would be replaced with a flat 17.5% tax on all capital gains from digital assets.
The move was met with consternation from other corners of the Brazilian government. Federal Deputy Gustavo Gayer responded by introducing a draft legislative decree that would nix the move. In presenting that decree, Gayer accused the Executive government of overstepping its constitutional authority.
Similarly, Brazilian lawmaker Eros Biondini proposed legislation that would exempt digital assets from taxation and direct the government to establish a Bitcoin reserve.
The spat takes place as the Brazilian digital asset industry awaits rulemaking from the Central Bank of Brazil. Legislation passed in 2022 laid the groundwork for regulating the industry, including licensing procedures and penalties for non-compliance, by giving regulatory responsibility to the central bank. These rules were originally expected in 2024, but have been pushed to sometime this year. A fresh round of public consultation ended as late as February.
Watch: Darren Kellenschwiler explains BEEF transactions on BSV
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