Brazil Plans to Tax International Cryptocurrency Transfers — Reuters

• Brazil is considering taxation of cryptocurrency cross-border payments.
• The drivers of such actions are the rapid growth of the market and the classification of crypto transactions as foreign exchange transactions.
• The Federal Police has estimated that the state’s annual losses from the shortfall in taxes on crypto transactions amount to more than $30 billion.

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Brazil is studying the possibility of introducing a tax on the use of cryptocurrencies for international payments, two officials with knowledge of the situation told Reuters. The idea is to extend the financial transaction tax (IOF) to cover some cross-border transfers with virtual assets and stablecoins, which the central bank this month classified as foreign exchange transactions.

As noted in the publication, crypto transfers are currently not subject to IOF, and investors only pay capital gains tax if they exceed the monthly limit.

According to one of the sources, the new rules are intended to “ensure that the use of stablecoins does not create regulatory arbitrage vis-a-vis the traditional foreign-exchange market.” The source also noted that the government is closely examining the taxation issue, as the central bank’s definitions do not automatically create tax liabilities.

According to the Federal Tax Service, the volume of crypto transactions in Brazil reached 227 billion reais ($42.8 billion) in the first half of 2025, up 20% year-on-year. USDT stablecoins accounted for two-thirds of the transactions, while bitcoin accounted for only 11%.

The rapid growth of the market and the classification of crypto transactions as foreign exchange have paved the way for the possible introduction of the IOF. Authorities have warned that stablecoins are often used not as an investment tool but as a way to avoid currency control and taxes.

As a reminder, the law on the taxation of income from crypto assets on foreign exchanges appeared in Brazil in December 2023 and came into force on January 1, 2024.

He estimated the annual losses to the state at more than $30 billion.

In November 2025, the Brazilian regulator approved three resolutions — No. 519, No. 520, and No. 521 — that define the licensing of companies working with crypto assets, the rules for their authorization, and a new procedure for the use of virtual assets in foreign exchange transactions. The documents will come into force on February 2, 2026, and provide for a $100,000 limit on international transfers.

Under the new regulations, any purchase, sale, or exchange of stablecoins will be considered a currency transaction. The classification also covers international payments, card payments, and transfers to and from self-storage wallets.

This comes amid broader discussions about the role of cryptocurrencies in the financial system. In particular, in March of this year, Brazilian MP Luiz Filipe de Orleans e Bragança introduced draft law PL 957/2025, which is intended to regulate salary payments in crypto assets. The document allows payments in virtual assets up to 50%, and, in some cases, — completely in cryptocurrency.