Brazilian Tax Authority Forces Local Crypto Traders Declare Their Deals
November 6, 2018
The Department of Federal Revenue of Brazil (RFB) has obliged local crypto traders to report on every transaction with digital currency they execute.
According to the latest document by the RFB, from November 1 on all Brazil-based crypto exchanges will have to submit monthly tax return to the state authority thus providing information on all crypto deals made by their customers-residents of the country. The paper also notes that if total amount involved in transactions with digital currencies executed by a Brazil resident at any exchange exceeds the limit of 10,000 of Brazilian reals (about $2,700) these traders will have to make their own transaction report.
The country citizens who fail to comply with these directions by the RFB will face a forfeit to the amount depending on situation. For instance, undue submitting of the report will result in up to 1,500 reals (~$400). If the reported data prove inaccurate of false the authority is entitled to charge up to 3% of the each transaction mentioned in the report.
As the RFB members say, these measures were taken due to dramatically increased popularity of crypto industry in the country. According to the recent report, the number of customers at local crypto exchanges has exceeded that registered at the Sao Paolo stock exchange. Currently, total amount of transactions conducted at the five major crypto exchanges of Brazil makes around 8.3 million reals (~$2.2 million).
It must be added here that at the end of last month the Federal District Court of Brazil forced the banks Banco do Brasil and Santander Brasil unblock accounts owned by the Bitcoin Max crypto exchange as it called the measures they take towards the platform abusive and violating from the customer protection regulations.