Stablecoin

2024

America

Bitcoin

Brazil’s tax authority is reportedly planning to seek information from foreign cryptocurrency exchanges to find out how they operate in the country and whether its citizens are complying with the country’s new tax laws or not.
The Receita Federal do Brasil (Federal Revenue of Brazil) is expected to publish an ordinance summoning these firms for further information later this week, <a href="https://www.reuters.com/markets/currencies/brazils-tax-authority-summon-foreign-crypto-exchanges-information-2024-06-18/" target="_blank" rel="noopener noreferrer nofollow">according</a> to a June 18 report from Reuters citing comments from Brazilian officials.
“It's an area of concern for us to understand first how they operate here, whether there’s any illegality or not,” Andrea Chaves, DFR’s Deputy Secretary of Inspection told Reuters.
<blockquote>
 “We are also concerned about having information on Brazilian wealth subject to taxation.”
</blockquote>
Up until now, only local cryptocurrency exchanges have been obligated to report transactions conducted on their trading platforms.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-06/02a0f376-fb75-4620-b908-ca12d59c7426.png" alt="" title="">
 <figcaption style="text-align: center;">Top crypto exchanges by market share include Binance, Mercado Bitcoin and Bisto. Source: Kaiko Research
 </figcaption>
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Last December, <a href="https://cointelegraph.com/news/brazil-signs-its-overseas-crypto-tax-bill-into-law" rel="noopener noreferrer nofollow">Brazil passed a law</a> mandating Brazilians to <a href="https://cointelegraph.com/news/brazilian-senate-tax-rule-change-crypto-foreign-exchange" rel="noopener noreferrer nofollow">pay a 15% income tax</a> on cryptocurrency profits and dividends earned on foreign exchanges.
<a href="https://cointelegraph.com/learn/cryptocurrency-regulations-in-latin-america" rel="noopener noreferrer nofollow">The Brazilian tax authority</a> intends to collect around $4 billion (20 billion Brazilian reals) in the 2024 financial year.
Related: <a href="https://cointelegraph.com/news/el-salvador-removes-all-taxes-related-to-tech-innovation-for-economic-growth" rel="noopener noreferrer nofollow">El Salvador removes all taxes related to tech innovation for economic growth</a>
Binance, Coinbase, OKX and KuCoin are among the notable trading platforms operating in the country. Binance currently holds <a href="https://cointelegraph.com/news/brazil-leads-latam-crypto-trading-volume-2024" rel="noopener noreferrer nofollow">the largest market share in Brazil,</a> accounting for 79% of all transactions — though it has lost some of its dominance to Brazil’s Mercado Bitcoin and Mexico-based Bitso in recent months.
Meanwhile, Brazil saw a spike in <a href="https://cointelegraph.com/learn/on-chain-volume-vs-trading-volume-differences-explained" rel="noopener noreferrer nofollow">cryptocurrency trading activity</a> in the first few months of 2024, increasing 30% year-on-year to $6 billion between January and May.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-06/5c418efc-e99b-4ab4-9004-de388608a2d3.png">
 <figcaption style="text-align: center;">Breakdown of Brazilian real trading pairs by cryptocurrency between May 2020 and May 2024. Source: Kaiko Research
 </figcaption>
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A recent Kaiko report revealed that it is the largest market player in Latin America and the seventh-largest worldwide in terms of fiat currency trade.
Stablecoin transfers remain the main source of cryptocurrency activity in Brazil.
Magazine: <a href="https://cointelegraph.com/magazine/what-actually-use-bitcoin-el-salvador/" rel="noopener noreferrer nofollow">What it’s actually like to use Bitcoin in El Salvador</a>

Brazil’s tax dept to summon info from foreign crypto exchanges: Report

Cointelegraph

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