No one likes to pay taxes. But taxes are the law. Crypto exchanges in Brazil are now required to provide all user transactions conducted to Brazil's RFB who wants to clamp down on any tax fraud going on in the country.
June 21, 2019, | AtoZ Markets - The Department of Federal Revenue of Brazil (RFB) has released new rules requiring that crypto exchanges in Brazil inform the regulator about users' transactions with the purpose of identifying tax fraud, as reported on June 19.
Regulators tightened control over crypto exchanges in Brazil
The guidelines clarify how crypto exchanges in Brazil should adopt new rules to report about the movements of users' crypto funds to the agency, and comply with the requirements of Normative Instruction 1.888/2019 published in May 2019.
The agency specifically requires that operators of crypto exchanges in Brazil to provide information about all transactions carried out within their system, while those platforms based abroad must provide information "whenever the monthly value of the operations, alone or jointly, exceed 30,000.00 Brazilian reals [$7,750]."
Apart from the volume of a transaction, operators are also required to provide data such as the nationality of the digital currency holder, their residence or domicile, registration number and the crypto assets used in a transaction. In addition, according to the rules, all required information must be provided within a specified period, "until 23:59:59, Brasilia time, on the last calendar month subsequent to that in which the operation took place." The new rules will come into force in September 2019.
RFB crypto initiative an expected step
When the RFB announced that it was forming the requirements for crypto exchanges in Brazil, Ismair Junior Couto, legal director of the Bitcoin Banco Group — Brazil's largest cryptocurrency broker — said that the release of this initiative was an expected step. He added that Bitcoin Banco had made provisions to provide the required information to authorities.
Earlier on May 31, the President of the Chamber of Deputies of Brazil ordered a commission to be created to consider cryptocurrency regulation in the country. The commission will be tasked with regulating local activities around Bitcoin and other digital assets.
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