The issuer of the largest stablecoin, USDT, Tether’s adoption continues to grow. According to data provided by Brazil’s revenue services agency, the adoption of Tether’s USDT showed a significant increase in Brazil and accounted for 80% of cryptocurrency transactions in the count...
The issuer of the largest stablecoin, USDT, Tether’s adoption continues to grow. According to data provided by Brazil’s revenue services agency, the adoption of Tether’s USDT showed a significant increase in Brazil and accounted for 80% of cryptocurrency transactions in the country.
USDT’s Transaction Volume Almost Doubles Bitcoin
USDT transactions have been on the rise in Brazil since 2021, but it surpassed Bitcoin’s transaction volume for the first time in July 2022, during the period when crypto lending companies Three Arrows Capital and Voyager Capital collapsed.
Details of the Crypto Tax Implemented in Brazil
The revenue agency also targets cryptocurrency investments held by Brazilian citizens abroad. The Brazilian Congress approved a law on October 25 that recognizes cryptocurrencies as “financial assets” for tax purposes in foreign investments. Gains between 6,000 and 50,000 Brazilian reais (approximately 10,000 dollars) earned abroad will be subject to a 15% tax rate starting from January 2024. Above this threshold, a tax rate of 22.5% will be applied.
Since 2019, cryptocurrency exchanges operating in Brazil have been required to share all user transactions with the government. Capital gains derived from monthly cryptocurrency sales exceeding 35,000 Brazilian reais (approximately 7,000 dollars) are subject to a progressive tax rate ranging from 15% to 22.5%.