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May 13, 2026StrategyRicardo Zago12 min

Law 5,709/71 and the Supreme Court: How Blockchain Strengthens Legal Certainty in Rural Guarantee Operations

Summary

The STF unanimously confirmed the constitutionality of Law 5,709/71, forcing foreign-controlled Brazilian companies to follow strict land acquisition restrictions. For the capital market (Fiagros/CRAs), this makes corporate control traceability a critical legal certainty requirement, where blockchain technology offers immutable auditability solutions.

On April 23, 2026, the Supreme Federal Court closed a decade of uncertainty. The decision reaffirms that Brazilian companies with majority foreign capital are subject to the same restrictions applied to foreign legal entities when acquiring rural properties.

How Blockchain Helps

Blockchain technology provides a concrete solution to the traceability problem that the market now explicitly demands through on-chain control tracking and digital ownership history.

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Ricardo ZagoRZ

Ricardo Zago

Consultant and Co-founder of Avalon Blockchain Consulting · Blockchain Professor at FIAP · Startup Mentor

Ricardo Zago works on structuring blockchain businesses, real asset tokenization, and stablecoins for the corporate market. He develops projects at the intersection of traditional markets and decentralized infrastructure, focusing on regulatory feasibility and generating results for Brazilian companies.

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