Brazil’s Tax Regulator Set to Tighten its Grips on the Country’s Cryptocurrency Industry
The Brazilian Department of Federal Revenue (RFB) has made it known that it will be paying special attention to all cryptocurrency related transactions in the country. The aim of the agency is to control money laundering and prevent tax evasion.
Department of Federal Revenue (RFB)
Based on a recent report, the Department of Federal Revenue (RFB) has published a document which made it known that all businesses and individuals performing cryptocurrency exchanges in the country have to submit detailed reports of all their cryptocurrency-related operations every month.
The report made it known that any crypto-related transactions above 10,000 Brazilian reals (about $2,700) need to be reported to the RFB through the agency’s virtual service center.
The report also made it clear that there are penalties for defaulter, as anyone who fails to comply with this will be fined.
According to the RFB report, over 4 billion reals which amount to about $1 billion cryptocurrency transactions were recorded in the country. This includes purchase and trading of cryptocurrencies like bitcoin.
Crypto Industry’s Growth in Brazil
Looking at the crypto industry’s growth in Brazil this year, the annual trading volume is expected to be between 18 and 45 billion Real which is about $4.8 to $12.1 billion
The RFB also went on to say that in recent years, Brazil has experienced a significant increase in the crypto assets market, and this shows how relevant crypto assets market in Brazil is especially for the tax administration. Cryptoasset is very relevant for the tax administration because all transactions are subject to income tax based on the capital gains that are made.
The document from the RFB also showed that different news outlets have one time or the other reported cases where crypto was used to evade taxes and launder money. The regulator promises to do everything in its power to curb this.