The Federal Revenue of Brazil, in a recent initiative, will begin to more strictly monitor foreign cryptocurrency exchanges operating in the country. This action aims to ensure that the operations of these platforms are aligned with Brazilian regulations established in 2019. Exchanges will be questioned about their interactions with local service providers and will be required to provide specific details required by legislation.

Andrea Chaves, Undersecretary of Inspection at the Federal Revenue, expressed the agency’s concern: “It is an area of ​​concern for us to first understand how foreign cryptocurrency exchanges operate here, whether there is any illegality or not.”

Additionally, the IRS plans to collect detailed information about Brazilians’ crypto assets that should be subject to taxation. With the aim of formalizing this process, it is expected that an ordinance convening the exchanges will be issued by the end of this week.

The differentiation between the obligations of national and foreign platforms is notable, as currently only local companies are required to report their transactions directly to the IRS.

Among the international platforms that stand out in the Brazilian market are Binance, Coinbase, OKX and KuCoin, although there are many others in operation.

The cryptocurrency scenario in Brazil shows substantial growth, as reported by the IRS itself. In the first half of 2023, the total declared in cryptocurrencies by individuals and legal entities was 133.6 billion reais (approximately US$24.6 billion), with 14.5 billion reais (approximately US$2.7 billion ) attributed to foreign exchanges. These numbers represent an increase of 36.6% and 51.2%, respectively, compared to the same period in the previous year.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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