Brazil To Launch Crypto Tax for International Payments
Brazil’s Finance Ministry is set to introduce a strategic crypto tax policy for international payments. According to sources familiar with the matter, this bold move aims to close a long-standing regulatory loophole in the country’s foreign exchange transactions levy.
Significantly, this crypto tax development could not only boost public revenue but also mark a pivotal step towards greater transparency and accountability in the Brazilian crypto space. The initiative comes in response to the growing momentum in cross-border payments using cryptocurrencies and stablecoins.
Brazil to Introduce New Crypto Tax Regulations: Here’s All
The Finance Ministry of Brazil has announced its plans to launch a new crypto regulation framework, focusing on taxation. The proposed crypto tax policy revolves around expanding the country’s financial transaction tax (IOF) to include certain cross-border transfers involving Bitcoin, altcoins, and stablecoins.
Notably, this development comes on the heels of the central bank’s classification of digital assets as foreign exchange operations, signaling a crucial shift in the country’s approach to crypto regulation. It is also noteworthy that Brazil announced its plans just a day after Japan revealed its proposal to slash its crypto tax from 55% to a much lower 20%.
As per reports, the central bank rules will come into effect by February 2026, with the focus on stablecoins. Trading activities involving stable tokens- buys, sales, or exchanges- will be considered as foreign exchange transactions. In addition, overseas payments and transfers of cryptocurrencies will also be categorized under foreign exchange transactions. Other transactions in this classification include internal payments and transfers utilising cryptocurrency, card settlements, and self-custody wallet transfers.
How Will the New Tax Policy Impact the Market?
Currently, digital assets are exempt from the IOF tax, but are subject to income tax on capital gains above a monthly threshold. While the move is focused on closing a regulatory loophole, it could also have a significant impact on public revenue.
Interestingly, the nation has seen a remarkable surge in the crypto market recently, especially driven by the increasing acceptance and use of stablecoins. As per reports, Brazil’s crypto transactions have hit a massive 227 billion reais, equivalent to $42.8 billion, during the first half of 2025. This marks a 20% surge from the past year.
Amid these transactions, USDT has taken the lead, comprising two-thirds of the total volume. This signifies the growing use of USDT and other stablecoins in the country, aligning with the global rise in their adoption. At the same time, Bitcoin was used the least, accounting for only 11% of the overall crypto transactions.
Reportedly, the new rules are supposed to “ensure that the use of stablecoins does not create regulatory arbitrage vis-a-vis the traditional foreign-exchange market.” With comprehensive regulatory moves and crypto tax implementation, the digital asset industry in the country could get a boost. It could bring more transparency and clarity to the industry, where stablecoins were increasingly used for illegal transactions and money laundering.
