Brazil weighs taxing crypto-based international payments: report
Brazil is considering new tax rules that would apply to international payments made with cryptocurrencies, including stablecoins, according to a Reuters report citing two officials familiar with the discussions.
The proposal follows the central bank’s recent decision to classify these types of crypto transactions as foreign-exchange operations. By doing so, they could soon fall under Brazil’s Financial Operations Tax (IOF), which currently does not apply to crypto. Investors today only owe income tax on capital gains above the monthly exemption threshold.
One source told Reuters that the Finance Ministry is now reviewing how the IOF could be applied to certain cross-border transfers involving cryptocurrencies and stablecoins. The ministry has not yet issued an official statement.
Officials say the potential rule change is meant to close a regulatory gap. It could also help generate additional tax revenue at a time when Brazil’s fiscal policies are under heightened scrutiny.
Stablecoins drive a growing market
Brazil’s crypto market has expanded rapidly in recent years, with stablecoins — especially USD Tether (USDT) — driving most of the activity. According to Brazil’s federal tax authority, crypto transactions hit 227 billion reais ($42.8 billion) in the first half of this year, a 20% jump compared to the same period in the previous year.
• About two-thirds of that volume involved USDT.
• Bitcoin accounted for roughly 11%.
A source noted that the central bank’s new regulatory framework is what makes this tax change possible. Authorities see stablecoins as a low-cost way for people to hold dollar-based assets and want to prevent them from being used to bypass rules governing the traditional foreign-exchange market.
Officials have also raised concerns that the growing use of stablecoins for payments — rather than investment — may create new money-laundering risks.
New rules take effect in February
Starting in February, the central bank will treat buying, selling or exchanging stablecoins as foreign-exchange operations. The rules will apply to:
• payments or transfers made with virtual assets,
• card payments and other electronic transactions,
• and transfers from self-custody crypto wallets.
However, the central bank’s classification is only one step. Any new tax obligations would still need to be defined by separate guidance from Brazil’s federal tax authority, one source emphasized.
Reporting requirements around crypto have already expanded. As of 17th of November, Brazil’s tax agency now includes foreign service providers operating in the country under its reporting rules.
