Back in August this year, the Department of Federal Revenue rolled out various provisions and stipulations that require all Brazilian citizens to report transactions that involve cryptocurrency. A recent report tabled on December 6th from one of Brazil’s most popular news outlets stated that the new codes for reporting cryptocurrency was introduced to back up the previous provisions.
Another Brazilian media outlet reported that the measures were brought on board to prevent illegal dealings such as tax evasion, money laundering, terrorism funding, and weapons trafficking.
The Department of Foreign Revenue of Brazil stated that transactions in excess of $30000 Brazilian real ($7,600) must be reported to tax authorities. These rulings target all crypto activities including private investors, brokerages as well as companies dealing in crypto. Failure to comply on the same will lead to sanctions. On the other hand, inaccurate and unfinished filings may be trimmed 1.5 to 3 percent of the total value of the transactions.
A report released earlier on Brazil's cryptocurrency market is expanding at a fast and exponential rate. The report continued to say that at that time crypto had gained more investors than B3, the country’s second-oldest stock exchange. At that time, the number of investors using B3 stood at 800,000 customers.
Funds for the Department of Federal Revenue were Low
In late summer of this year, FinTech news outlets reported that tax authority RFB expected the government to unlock financial resources.
The agency noted that it would terminate contractor agreements as well as stop the paying of income tax refunds if the requirement was not met. To further the regulatory understanding of the cryptocurrency industry in Brazil, a regulatory platform for financial and blockchain technology is essential.