The right to self-custody cryptocurrencies is debated in the House of Representatives

The Chamber of Deputies is debating the right to self-custody Bitcoin and other virtual assets, according to a report published in the newspaper Chamber News Agency this Thursday (22).

The discussion revolves around the advance of Bill 311/2015, by Julia Zanatta (PL/SC), which provides for “the protection of the Right of Self-Custody of Virtual Assets”.

The bill aims to ensure that citizens have the right to direct custody of their virtual assets, including Bitcoin and other cryptocurrencies, without the need for brokers or other institutions.

It also prevents any measure, rule or administrative act from restricting or preventing the transfer of virtual assets to “self-custody wallets owned by the user”.

The proposal also prevents any compulsory conversion to state-owned digital currencies, ensuring that citizens retain full control over their digital assets.

According to Zanatta, “self-custody of virtual assets is an essential right”, linked to the fundamental constitutional principles, such as:

• Property rights (art. 5, XXII);
• Free enterprise and economic freedom (art. 1, IV, and art. 170);
• Privacy and protection of personal data (art. 5, X and XII);
• Inviolability of assets and digital records, This includes cryptocurrencies.

Bill comes in response to the Central Bank

The project's justification describes how the right to self-custody has been threatened by recent regulatory proposals in Brazil.

In Public Consultation No. 111, the Central Bank proposed Article 76-F, which would prohibits virtual asset service providers from making transfers to self-custodied wallets of non-residents.

Second According to Pedro Torres, a lawyer specializing in cryptocurrencies, quoted by the congresswoman, Article 76-F “lacks a constitutional basis, since violates the principles of free enterprise, isonomy and reasonableness - as well as the right to property.”.

The bill will be analyzed by the Finance and Taxation Committee and the Constitution, Justice and Citizenship Committee (CCJ). To become law, the bill still needs to be approved by the House of Representatives and the Senate.

The text can still be amended during the process.

We have tried to contact the author of the bill for more information on the process and may update the story with more details soon.