November 2, 2018 | AtoZ Markets
The Department of Federal Revenue of Brazil (RFB), has requested to receive monthly reports on the operations of digital assets in the country.
In the paper, released on October 30, the RFB – being in charge of tax collection in the country, has announced that Brazil-based crypto exchanges are now requested to inform them in detail on a monthly basis, about every single crypto operation occurs.
The new obligation requests the companies involved in trading in cryptocurrencies, to declare their identities, along with the number of transactions they have.
The RFB’s draft on crypto taxation obliges both legal entities and individuals residing in Brazil, to include in their assets declaration, all the transactions they make, provided they exceed $10,000 Brazilian reals ($2,700) per month.
The document dictates also that those who fail to comply with the new requirements, will be fined, where the delay in declaring taxes exposes citizens to a fine of 1,500 Brazilian reals ($400), whereas the lack of the information needed in the declaration is subject to a fine of 3% of the total transaction value.
The new regulations are still to be discussed with the public
The RFB noted it is open to public consultation on the new regulation, as it announced that proposals will be accepted between Oct. 31 and Nov. 19.
The taxation department explained in its document that the new regulations were suggested in the light of the rapid growth of the crypto market in the country, where the number of clients already exceeded the registered users at B3 (the Sao Paulo-based Brazilian stock exchange).
It is worth mentioning in this context that the daily transactions volume carried out by the five major Brazilian crypto exchanges exceeds 8.3 million reals, which equates $2.2 million.
Analysts read that the step comes in response to the probe launched by CADE- a local antitrust agency, as Brazilian banks were reported to have closed some crypto-related accounts, following several complaints from the crypto industry submitted to the Brazilian Blockchain and Cryptocurrency Association (ABCB).
In its turn, CADE had sent a questionnaire to ten Brazilian crypto exchanges affected by the bank’s decision, asking them to explain how their business functioned in Brazil.
The media reported in late October as well, that the Federal District Court of Brazil forced major banks Banco do Brasil and Santander Brasil to authorize the accounts for the crypto exchange Bitcoin Max, where the judge ruled that the banks’ decision to close the crypto-related accounts was “abusive conduct” violating consumer protection rules.