The Brazilian Tax Authority will request data from foreign exchanges about their activities
Date: 2024-06-19 Author: Gabriel Deangelo Categories: IN WORLD
The Brazilian government is going to begin collecting information on the activities of foreign cryptocurrency exchanges on its territory. The Brazilian Federal Tax Service (RFB) is preparing to issue a formal request to summon representatives of these companies to obtain the necessary data.
Goals and objectives
The main goal of this event is to study whether cryptocurrency exchanges violate the laws of the country in the course of their activities. In particular, RFB is interested in how exactly companies interact with local virtual asset service providers.
The deputy secretary for inspections at the RFB, Andrea Chavez, said: “We are concerned about how they operate here, whether there is any illegal activity here or not. We are also concerned about the availability of information on Brazilian wealth subject to taxation.”
Among the cryptocurrency exchanges that operate in Brazil, but are not based there, are:
- Binance
- Coinbase
- OKX
- KuCoin
Interest in the activities of cryptocurrency exchanges on the part of RFB is growing against the background of increasing activity of local users. From January to July 2023, Brazilian citizens declared $24.6 billion in cryptocurrency, an increase of 36% compared to the previous reporting period. Of this amount, $2.6 billion came from foreign crypto exchanges, representing a 51.2% increase over the same period in 2022.
Cryptocurrency trading volume
According to data from analytics company Kaiko, from January to April 2024, the trading volume of cryptocurrencies paired with the Brazilian real (BRL) reached $6 billion. This figure also indicates significant interest in cryptocurrencies among Brazilian users.
These measures by the RFB are part of the government's broader efforts to regulate and monitor cryptocurrency activities in the country. Recall that the Brazilian Senate recently passed a bill introducing a 15% tax on income from digital assets, which once again highlights the growing attention to this sector.
We will continue to monitor developments and provide updated information as new information becomes available.
