Brazil has been actively involved in adopting cryptocurrencies and the global crypto market, with major exchanges Binance, Coinbase, OKX, and KuCoin receiving increased attention.
These platforms have been requested to provide detailed information about their operations and partnerships with local service providers, particularly regarding compliance with tax legislation.
Unlike local companies, companies based in other countries are not bound by Brazilian law, which requires them to provide information about their operational methods to regulatory agencies. The seriousness of this issue has been emphasized by the Brazilian tax authorities. Andrea Chavez, Deputy Minister of Surveillance at the Brazilian Federal Revenue Agency, stated:
“For us, it is important to investigate their activities in this country and determine if there are any illegal activities. We are also interested in understanding the taxable wealth of Brazilians.”
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Wagner Lima, Risk Management Coordinator at the Revenue Agency, stated that as part of the implementation of regulations in 2019, the government is seeking to understand how these international participants collaborate with local suppliers.
The current situation we are witnessing is not an isolated case. Cryptocurrency trading in Brazil has significantly increased. From January 2023 to June 2023, Brazilians traded cryptocurrencies worth $260 million, a growth of 51.2% compared to the previous year. Particularly noteworthy is the volume of such transactions conducted through foreign exchange, reaching $2.02 billion, a 100% increase from the previous year.
