The Brazilian Federal Department of Revenue, commonly known as Receita Federal (RFB), will begin Collect information from foreign cryptocurrency exchanges to ensure compliance with local regulations.
RFB wants to understand how these exchanges interact with local service providers and whether they comply with regulatory requirements issued since 2019.
Deputy Audit Secretary Andrea Chaves emphasized the tax department’s concerns about possible illegal conduct and emphasized the need for foreign cryptocurrency exchanges to provide the necessary details. RFB is trying to collect data to ensure that Brazilians’ assets in the form of cryptocurrencies are fully taxed.
The Tax Department is expected to issue a decree requiring foreign trading floors to provide information. The move is intended to address an imbalance where Brazilian exchanges must report transactions, while foreign entities currently do not have to do so.
There has been a significant increase in cryptocurrency activity in Brazil. In the first half of 2023, tax filing entities declared 133.6 billion reals ($24.6 billion) in cryptocurrencies, including 14.5 billion reals ( 2.7 billion USD) on foreign exchanges, representing growth of 36.6% and 51.2% in each category compared to the first half of 2022. This growth highlights the importance of regulatory oversight while markets expansion field.
Recent data from Kaiko Research shows Brazil’s growing prominence in the global cryptocurrency market. The country has seen a significant amount of trading involving the Brazilian Real, becoming the largest cryptocurrency market in South America and one of the largest markets globally for trading in fiat currencies.
Overall, Brazil’s regulatory actions reflect a general trend of governments globally trying to more closely regulate and monitor cryptocurrency activities. The strategy aims to balance innovation and financial stability while ensuring compliance with tax laws and preventing illegal activities such as money laundering and tax evasion in the digital asset space.
Itadori
According to Cryptoslate
