Overview
- Two government officials told Reuters the Finance Ministry is considering applying Brazil’s IOF financial transaction tax to some international transfers using cryptocurrencies and stablecoins, with no formal decision announced.
- Crypto operations are not currently subject to IOF, though investors owe income tax on capital gains above a monthly exemption.
- New central bank rules classify stablecoins and certain virtual‑asset transfers as foreign‑exchange operations, creating the legal basis for such taxation from February 2026.
- The federal tax authority has expanded crypto reporting to include foreign service providers operating in Brazil, increasing visibility into cross‑border flows.
- Tax data show 227 billion reais ($42.8 billion) in crypto transactions in H1 2025, roughly two‑thirds involving USDT, and a Federal Police official estimates over $30 billion in annual revenue is lost through imports paid with crypto to avoid taxes.