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The Brazilian government is considering taxing Crypto Assets trading, and experts say implementation requires legislative support from Congress.
On June 6, news emerged that the Brazilian government is considering taxing Crypto Assets transactions to alleviate the social impact of the increase in the financial transaction tax (IOF). After the government announced an increase in the IOF tax rate on May 22, House Speaker Hugo Motta proposed including Crypto Assets in the tax range during a public speech, but emphasized that the proposal has not yet been finalized.
This proposal has caused controversy in Brazil’s Crypto Assets industry. Vanessa Butalla, Vice President of Legal Affairs at Mercado Bitcoin, pointed out that imposing IOF on Crypto Assets according to the current regulations of the Brazilian tax authority is equivalent to taxing investment properties and lacks legal basis. Daniel de Paiva Gomes, a partner at Paiva Gomes Law Firm, further emphasized that only congressional legislation can classify Crypto Assets as taxable assets, and the government only has the authority to adjust tax rates and deadlines.