- The Superior Court of Justice of Brazil allowed the freezing of cryptographic assets of local exchanges to settle unpaid debts.
- Despite the entire regulations, Brazil still ranks second in Latin America for the adoption of cryptography.
The Superior Court of Justice of Brazil has decided This cryptocurrency stored on local platforms can be frozen if someone does not pay what they should. Judges are now authorized to take these funds to help reimburse lenders when debts remain unpaid.
The Brazilian Superior Court of Justice (STJ) gave the courts the right to alert cryptographic platforms when they plan to take the cryptocurrency of people who have not paid for what they should. This decision came because of a case that appeared where someone was trying to recover money. The decision shows that the country now considers crypto as an asset that can be used to pay unpaid and kept invoices as a wealth reserve.
Although cryptocurrency is not entirely regulated in Brazil, certain proposed laws already describe it as a digital form of value. One of the judges, Ricardo Villas Bôas Cueva, said that the courts should find ways to meet the challenges of monitoring the crypto, especially because people often use it to hide money. Another judge, Humberto Martins, also added that not having regular assets does not prevent the law from acting.
This decision would allow the courts to verify the exchanges of crypto for the assets of different people, even if there is no evidence that they have them. This decision follows the rules of federal income which require that all activities related to crypto within the State be declared. To further support this newly promulgated law, the country is currently building a system called Criptojud to help trace and freeze crypto assets. This is done with the help of the Brazilian association of the cryptographic economy.
Cryptographic growth in Brazil despite unclear rules
Even if Brazil does not yet have a rule defined on its position on digital assets, the use of cryptography increases rapidly. The central bank manages the process According to its regulation, but adoption continues to increase.
A October report by Chain-analysis Classified in Brazil as second in Latin America for the greatest amount of crypto received, which shows a strong interest. Earlier this year, Binance also obtained permission to appear in the country after buying an investment company in São Paulo.
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