In a significant move aimed at tightening the country’s tax framework, Brazil is reportedly considering the introduction of taxes on cryptocurrency transactions associated with international payments. This initiative seeks to address existing loopholes in the nation’s tax system linked to foreign-exchange operations.
Cross-Border Crypto Transfers As Forex Operations?
Officials from Brazil’s Finance Ministry have indicated that they are exploring the possibility of extending the financial transaction tax (IOF) to encompass certain cross-border transactions involving crypto assets, notably stablecoins. These assets are likely to be classified as foreign-exchange operations, a shift that could substantially impact how such transactions are taxed.
Currently, crypto transactions in Brazil do not incur the IOF tax, although investors are obligated to report and pay income tax on capital gains exceeding certain limits. The proposed tax aims not only at reinforcing regulatory oversight but also at enhancing public revenue as Brazil grapples with its fiscal targets amidst an evolving economic landscape.
Brazil’s crypto market has witnessed remarkable growth, particularly in the usage of stablecoins. In the first half of 2025, the total volume of crypto transactions hit 227 billion reais (approximately $42.8 billion), marking a 20% increase from the previous year. Stablecoins accounted for a significant portion—nearly two-thirds—of this volume, with Tether’s USDT being the dominant player. Conversely, Bitcoin (BTC) transactions constituted only about 11% of the total.
The central bank’s newly established regulatory framework is expected to bolster the anticipated tax change by clarifying the role of stablecoins as a means of maintaining dollar balances efficiently. One insider noted that upcoming regulations are designed to thwart regulatory arbitrage between stablecoins and traditional foreign-exchange markets.
Brazil Estimates $30 Billion In Annual Revenue Losses
Set to take effect in February 2026, the central bank’s guidelines will categorize interactions involving the purchase, sale, or exchange of stablecoins as foreign-exchange operations. This will also cover international payments made via virtual assets and electronic transactions involving self-custody wallets.
Brazilian authorities are proceeding cautiously with these tax considerations, asserting that new classifications do not automatically result in tax liabilities. Guidance from the federal tax authority will ultimately govern the tax obligations of these transactions.
Additionally, the tax service has expanded its reporting requirements for crypto transactions to include foreign service providers operating within Brazil. An official from the Federal Police remarked that increased transparency in digital asset transactions liable for IOF taxation could streamline the enforcement of other import taxes.
The official raised concerns that companies might misrepresent import values to evade taxes, saying, “If you import machinery or inputs, declare 20% officially, and send the other 80% via USDT without paying customs duties, IOF is the least of your problems.” The government estimates that over $30 billion in potential annual revenue from imports is lost due to crypto transfers designed to avoid taxation.
As Brazil navigates this complex landscape of cryptocurrency regulation, the proposed tax measures illustrate a growing recognition of the need for comprehensive oversight in the crypto sector while aiming to safeguard the nation’s revenue base.
