Brazil Introduces Legislation for Crypto Salary Payments

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• Brazil’s National Congress reviews a bill allowing employees to receive salaries in Bitcoin or digital assets, requiring 50% in reais.
• The proposal mandates financial education for workers opting for crypto payments, addressing volatility and security risks.

The Brazilian National Congress is reviewing a legislative proposal to enable employees to receive portions of their salaries in Bitcoin or other crypto assets. Authored by Congressman Luiz Philippe of Orleans-Braganza, the bill aligns with Brazil’s established regulatory framework for virtual assets, defined under Law No. 14,478/2022. If enacted, the law would allow workers to opt for cryptocurrency payments while adhering to labor regulations.

“I presented a bill for workers to have the option of receiving their full or partial salary in Bitcoin or other cryptocurrencies. The idea is that they can strengthen their autonomy and preserve the purchasing power of their remuneration,” he said then.

The bill mandates that companies provide detailed payment records and financial education to employees choosing crypto asset remuneration. Topics such as market volatility and transaction security must be disclosed.

Payments in crypto would require mutual consent between employers and workers, with either party permitted to terminate the arrangement. A minimum of 50% of salaries must remain denominated in Brazilian reais to ensure the currency’s stability.

The proposal will undergo initial review by the Chamber of Deputies before advancing to the Federal Senate. Freelancers, expatriates, and self-employed individuals are excluded, as existing regulations already permit flexible payment methods for these groups. Congressman Philippe emphasized the bill’s potential to attract foreign investment and reinforce Brazil’s position as a global crypto hub.

Brazil’s initiative mirrors Argentina’s 2021 proposal to allow salary payments in crypto assets, aimed at preserving purchasing power amid economic instability. Brazil’s regulatory clarity has already drawn major crypto exchanges, including Binance, which secured a brokerage license in the country earlier this year.

Brazil’s approach reflects a strategy to integrate crypto assets into its financial infrastructure while maintaining oversight. The bill, if approved, could normalize crypto transactions in labor markets, aligning with global trends in blockchain adoption.