Department of Federal Revenue of Brazil (RFB) Issues Preliminary Bitcoin Taxation Draft
Tax collection body of Brazil, the Department of Federal Revenue of Brazil (RFB) released a document on October 30th saying that they are expecting to receive monthly updates from
The paper says that exchanges that deal in cryptocurrencies are now expected to send RFB a detailed report about all the crypto-based operations in a given month, which includes the identity of the users and the number of their transactions. The newly proposed jurisdiction is not only for crypto exchanges but for all legal firms and individuals. Anyone who has participated in foreign transactions of more than $2,700 USD per month has to declare their reports.
Failure to comply with the terms of RFB’s draft will lead to a range of fines. Delay of tax declaration can rope in fines close to $400. In case of reporting of false or misleading information, the penalty can go as high as 3% of the transaction value.
Public conversation for this proposal is being accepted from Oct 3st till November 19th. The regulators justify these hard steps by saying that these are the necessary steps required to protect customers from crypto scams. The growth of this industry in Brazil has been massive and so has the amount of scams and illegal activities.
Brazil’s regulators have been increasingly tightening their screws around the crypto landscape Earlier this year, Brazil’s antitrust watchdog, the Administrative Council for Economic Defense (CADE), launched an investigation into whether the country’s banks were purposefully harming crypto exchanges by restricting their operations. To gain more insights into the operations of crypto exchanges, CADE sent 10 of the top exchanges a questionnaire.