Brazil is considering taxing cryptocurrency use for international payments to align with global standards. The Imposto sobre Operações Financeiras tax may be expanded to include digital asset-based transactions. Brazil’s Federal Revenue Service will align reporting rules with the Crypto-Asset Reporting Framework for data sharing. This move aims to close a loophole and boost public revenue.

Cryptocurrencies are currently exempt from the IOF tax, but capital gains face a 17.5% tax. Officials aim to close a loophole and prevent regulatory arbitrage with stablecoins. The move ensures stablecoin use doesn’t circumvent traditional foreign exchange taxes. Brazil’s central bank introduced new rules for stablecoin and crypto wallet operations, extending consumer protection and AML regulations.

Brazil’s Federal Revenue Service is aligning crypto-asset transaction reporting rules with global standards, aiming to close tax loopholes and boost revenue. The move follows the central bank’s introduction of new rules for stablecoins and crypto wallets, extending existing regulations to brokers, custodians, and intermediaries. Brazilian judges were previously authorized to seize cryptocurrency assets from debtors in April.

Read more at CoinTelegraph: Brazil Eyes Taxing Cross-Border Crypto Payments, Aligns With CARF