Brazilian Tax Regulator Publishes Draft on Cryptocurrency Taxation

The Department of Federal Revenue of Brazil, which administers tax collection in the country, is seeking to receive monthly reports on crypto assets operations, according to a document released by the RFB Tuesday, Oct. 30.

In the paper, the RFB has announced that Brazil-based crypto exchanges are now obliged to send them detailed reports on all crypto-related operations on monthly basis.

Both legal entities and individuals residing in Brazil are now obliged to report all the transactions they have carried out at foreign crypto exchanges if they surpass $10,000 Brazilian reals per month.

The RFB's draft on crypto taxation also sets a range of fines for those who fail to report their transactions.

For the delay of a tax declaration, citizens will have to pay up to 1,500 Brazilian reals.

In the explanatory note, the regulator states that such measures have been taken due to the significant growth of the crypto industry in the country.

According to the RFB, the number of crypto exchange clients has already exceeded the number of users registered at B3 - the Brazilian stock exchange based in Sao Paulo.

In its turn, the daily volume of transactions conducted by five major Brazilian crypto exchanges surpasses 8.3 million reals.

The regulator's draft follows a move by Brazilian banks to close some crypto-related accounts, which led to a probe launched by local antitrust agency CADE. The investigation was initiated on the request of the Brazilian Blockchain and Cryptocurrency Association following several complaints from crypto industry.

CADE has sent a questionnaire to ten Brazilian crypto exchanges targeted by the bank's decision.