Brazilian Government Forcing Higher Transparency and Auditability for Cryptocurrency Transactions

Regulators all over the globe are worried about the future of cryptocurrency. The rapidly increasing value of Bitcoin might disrupt the dominance of fiat currency. Recently, the Brazilian government has targeted cryptocurrency and asked all the legalized crypto startups to provide more transparency and credibility for every crypto transaction. New rules and regulation have already been passed; the government is asking users of cryptocurrency to provide more data of their trades. Apart from that, businesses also required to reveal their holdings in the cryptocurrency. Government is discussing new measures that will add tax on any crypto-to-fiat trading. According to the reports, the Brazilian Department of Federal Revenue (RFB) declared new rules for the crypto transactions and now users have to report the details of their buying and selling, donations, barters, deposits, and withdrawals to the RFB. This rule applies only when an individual transacts with more than R$30,000, which roughly converted to $7,000. All the transactions below this particular amount don’t have to send the information of the transact to the RFB. However, businesses still have to send a monthly report of their crypto transactions to the RFB. Apart from the RFB, the Central Bank of Brazil has already accepted cryptocurrencies as monetary assets, which makes it easy to trade digital assets with Brazilians. Though, the trade history will be reported in the country’s trade statistics. All these changes show how the Brazilian government is targeting cryptocurrency to make them a taxable event. As reported on the country’s local news channel, the Brazilian government is adding taxes to fiat-to-crypto transactions so that it can help the cryptocurrency market to grow. By adding taxes, country’s federal reserves will be able to be the part of each transactions their citizens make. This will latter help the country with better liquidity and higher Bitcoin conversion rate in local currency. Cryptocurrency News