Brazil’s RFB to Interrogate Foreign Crypto Exchanges for Info

Brazil’s tax revenue service (RFB) takes a sudden interest in digital assets.

A Brazilian financial officer interogating a robot ina digital space.
Created by Gabor Kovacs from DailyCoin
  • Brazil’s tax revenue service has expressed interest in understanding crypto exchange operations.
  • The taxman will soon summon foreign crypto exchanges.
  • The development comes as Brazilian crypto users surpass three million.

Brazilian government officials have intimated the taxman’s plan to summon overseas crypto exchanges soon to explain their domestic operations.

The development comes amid Brazil’s crypto renaissance, with the taxman’s latest report estimating a record 3.3 million digital asset users in the country. This previously unforeseen large number of users may explain Receita Federal’s (RFB) interest in understanding how the industry works and possibly how to oversee it.

RFB to Summon Crypto Exchanges

According to a June 18 Reuters report, Brazil’s tax revenue service is expected to release this week an ordinance calling for digital asset trading platforms to provide further details into their local operations.

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Unlike crypto exchanges formally domiciled in Brazil, foreign companies are obligated to report transactions conducted on their platforms.

Andrea Chaves, deputy secretary of inspection at the Federal Revenue Service, said the exercise will help the government to understand how the exchanges conduct business in Brazil, and whether their operations are legal.

“It's an area of concern for us to understand first how they operate here, whether there's any illegality or not. We are also concerned about having information on Brazilian wealth subject to taxation here,” Chaves stated.

Another official from the tax authority said in the report that the government also aims to establish the relationship of foreign exchanges with domestic service providers and ensure that they provide information as required by the taxman in a 2019 regulation.

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While the report did not mention specific exchanges, there are several overseas trading platforms not based in Brazil but have active operations in the country, some with even localized Portuguese-language websites. They include Binance, Coinbase, OKX, and KuCoin.

Stay updated on Circle’s expansion to Brazil:
Circle Taps Nubank to ‘Catalyze’ Digital Dollar Access in Brazil

Read about OKX’s venture into Brazil:
OKX Taps into Brazil’s Vast Potential with Exchange Launch

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.