Brazil Plans to Tax Crypto Transactions for Cross-Border Payments
Brazil is moving to impose taxes on cryptocurrency transactions used for international payments, with stablecoins as the primary target. The initiative aims to close regulatory gaps and bolster government revenue. Currently, crypto operations are exempt from the IOF tax, which applies to most foreign-exchange transfers, though investors still pay income tax on capital gains above a monthly threshold.
The central bank treats stablecoins as foreign-exchange operations, signaling a shift toward tighter oversight. This policy is expected to regulate emerging crypto payment channels while generating significant fiscal income. Brazil's cryptocurrency market has expanded rapidly, driven largely by stablecoin adoption.