Two Brazilian-Based Crypto Exchanges Close Down Operations Due To New Tax Laws
Brazilian lawmakers have succeeded in coming up with tough tax regulations meant for the crypto industry after various fraud cases in the sector for months.
Following the formulation of the new regulations, two exchange firms, Latoex as well as Acesso, have now made a decision to close down their operations after facing heavy fines, declining trading volumes as well as tough rules, Finance Magnate reports.
According to Accesso’ co-founder Pedro Nunes, the introduction of the new rules by the Federal Revenue Service (FRS), the traded volume dwindled significantly. He also explained that the market has significantly cooled down especially for the smaller crypto exchanges forcing the firm to close down its operations.
As per the new regulations, which came into effect at the end of last year, crypto holders and traders have to report every transaction that pertains to any cryptocurrencies. The new regulations are meant for both individual holders and institutions, brokers and other legal entities. Apart from trading (selling and buying) crypto holders are also expected to report deposits, donations, barters, withdrawals as well as other activities.
If crypto holders do not report these crypto transactions they will be held into account for a fine of between 500 Brazil reals (BRD) up to 1500 BRD which equates between $120 to $360. The exchanges are also required to have new resources apart from the high fines. This is a cost which the exchanges have complained will add to its operation costs.