Brazilian tax regulator publishes a draft on the taxation of cryptocurrencies


The Brazilian Federal Revenue Department (RFB), which administers tax collection in the country, is trying to receive monthly reports on asset encryption transactions, according to a document published by the RFB on Tuesday 30 October.

In the document, the RFB announced that cryptographic exchanges based in Brazil are now obliged to send detailed reports on all crypt operations on a monthly basis. For example, companies must disclose transaction amounts and customer identities.

In addition, both legal entities and individuals residing in Brazil are now obliged to report all transactions that they have made to foreign crypto trades if they exceed $ 10,000 Brazilian reals ($ 2,700) per month.

The RFB's cryptovalutation project also establishes a series of fines for those who do not report their transactions. For the delay of a tax declaration, citizens will have to pay up to 1,500 Brazilian reals ($ 400). In the event that the information provided is insufficient or false, the RFB could charge up to 3% of the value of the transaction as a fine.

The tax auditor has already opened a public consultation to receive proposals on the new regulation: the notes will be accepted from October 31st to November 19th.

In the explanatory note, the regulator states that such measures were taken due to the significant growth of the crypto industry in the country. According to the RFB, the number of criptovaluti clients has already exceeded the number of users registered in B3 – the Brazilian stock exchange based in Sao Paulo. In turn, the daily volume of transactions conducted by five major Brazilian crypts exceeds 8.3 million real (approximately $ 2.2 million).

The draft regulator follows a move by Brazilian banks to close down some encrypted accounts, which led to a probe launched by the local antitrust agency CADE. The investigation was initiated at the request of the Brazilian Blockchain and Cryptocurrency Association (ABCB) following numerous complaints from the crypto industry.

CADE sent a questionnaire to ten Brazilian cryptographic centers targeted by the bank's decision. The companies were asked to explain how their business worked in Brazil.

At the end of October, the Federal District Court of Brazil forced the main banks Banco do Brasil and Santander Brasil to reopen the accounts for the local encryption Bitcoin Max. The judge ruled that the banks' decision to close the encrypted accounts was "conducted abusive "that violated the rules of consumer protection.

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