Crypto traders in Brazil now have to report their transactions to the National Treasury.
The Department of Federal Revenue of Brazil published guidance regarding cryptocurrencies in May stating transactions in excess of $30,000 Brazilian real ($7,600) must be reported to tax authorities.
The ruling is widely seen as a means for the government to increase tax revenues. It targets both private investors as well as companies that deal in crypto. Brazil sees some of the highest cryptocurrency trading volumes in Latin America, topping nearly 100,000 BTC in April. Additionally, the total value of the crypto market exceeded $8 billion reals in 2018, according to the National Treasury.
Information related to the purchase, sale, or donation of crypto funds will be submitted to the National Collection, through the Virtual Service Center (e-CAC), by the last working day of the month.
Failure to comply may result in sanctions. Complete omissions may see fines from 100 to 1000 reais, while incomplete or inaccurate filings may be garnished 1.5 to 3 percent of the total value of the transactions.
Another Brazilian media outlet reported the measures were introduced to prevent “money laundering, tax evasion, weapons trafficking and the funding of terrorism."
According to The Rio Times, this compulsory provision went into effect on August 1.
In June, four of Brazil’s major financial authorities proposed a regulatory sandbox for financial and blockchain technology to further their regulatory understanding of the industry.
Brazilian flag photo via CoinDesk archives
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.