Brazil Congress Proposes Higher Taxes on Cryptocurrencies


A draft bill which would impose taxes on Brazilian overseas crypto asset investments has been approved by a congressional committee. This revision seeks to promote equal tax treatment since such investments currently receive lower tax breaks.

Under the new rules, gains from fluctuations in crypto asset prices against Brazil’s fiat currency, as well as foreign exchange rate fluctuations, will be taxed. Overseas earnings up to 6,000 Brazilian reais (~$1,200) will be exempt, while earnings between 6,000 and 50,000 (~$10,000) will be subject to a 15% tax rate. Above this threshold, taxes will be applied at 22.5%.

This could make local crypto exchanges a more attractive option for investors, particularly those with gains above the top tax bracket. It could also boost crypto exchange activity on the national level and attract foreign players to establish offices in the country. Global crypto exchanges such as Binance, Coinbase, Bitso, and, as well as local ones like Mercado Bitcoin and Foxbit, already operate in Brazil.

The legislation is expected to be voted on in Congress on August 28 and, if approved, it will take effect in January 2024. Recently, Brazil’s central bank announced the rebranding of its central bank digital currency (CBDC), now called Drex, and plans to introduce a tokenization system to expand business access to capital.

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