Adler Martins – lawyers

30/05/2019

How to set up a Bitcoin arbitrage business in Brazil

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Brazil has been a good market for Bitcon/cryptocurrency arbitrage. Although the last months have been rough, prices spikes always occur and specialists have pointed out to me that, if one can keep costs down, it is possible to set up a stable and recurring arbitration business. The restrictions faced by entrepreneurs are more due to bureaucracy and business culture than to legal regulation. Brazilian law is relatively welcoming of bitcoins and other cryptocoins. In this article I will explain both the theory and the practice behind it. Note: I`m using Bitcons as the general term for cryptocurrencies.   LEGAL FRAMEWORK OF BITCON ARBITRATION IN BRAZIL   Bitcoins did not receive a specific legal classification in Brazil, as of yet. So far, they are subsumed under the general class of “intangible goods”, but without any special designation such as software, services, intellectual property, etc. This turns out to be very consequential. The broad… Leia mais

22/05/2019

Can foreign individuals own mining companies in Brazil?

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Below, an interesting exchange with a reader (all personal details have been deleted). Dear Professor Adler Martins I like your blog very much, for I love International Law, negotiation and the art of drafting contracts. I would like you to help me with a doubt. May a foreign investor acquire a concession for mining exploration (gold) in Brazil? Is it necessary that Brazilian individuals also have equity in the company? What are the legal procedures and ways to accomplish that? Thanks in advance Abraço   Dear Reader, Thank you for following the blog. Regarding your question: The Brazilian Constitution, in its Article 176, says that the exploration and exploitation of mining deposits can only be pursued by a Brazilian individual or by a Company established in Brazil. Thus, if a foreigner wishes to acquire any kind of mineral rights in Brazil, it shall first set up a company in Brazil. This company may either have 100% foreign capital or be a… Leia mais

16/05/2019

Don’t leave bank accounts behind in Brazil, unless you set them straight

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I have been noticing a surge of tax audits regarding clients who lived in Brazil for a while and then went back home but kept financial investments in Brazil. This is how it happens: let’s say and American executive, or an Italian entrepreneur, works in Brazil for 03 years. During this time, he will notice that Brazilian banks pay very attractive interests for even the most basic investment. Naturally, he will get a taste for it. Everybody loves developing countries’ interest rates.   After leaving Brazil, the ideal procedure would be to  file a tax statement declaring definitive tax leave;  liquidate all investments;  open a non-resident bank account;  invest again, now through the non-resident bank account. Most people will file the tax statement declaring leave and will do none of the rest. It works for a while. The banks will turn a blind eye and maintain the accounts and investments. However, this is technically wrong, because… Leia mais