Brazil Orders Companies and Citizens to Report Crypto Transactions

By Newsfeed

RIO DE JANEIRO, BRAZIL – Brazil’s National Treasury has ruled that the country’s citizens must declare all domestic cryptocurrency transactions as of August 1st this year.

According to Brazilian media outlet “O Globo”, the Treasury says that it made its decision in an attempt to fight crimes “such as money laundering, tax evasion, weapons trafficking and the funding of terrorism.”

The Treasury claims: “As cryptocurrency transactions can be made anonymously and outside the traditional financial system, gangsters have been known to take advantage.”

The new ruling means that all Brazilian companies dealing with domestic transactions – no matter how small – must make full disclosures to the authorities.

In the case of international crypto dealings, Brazilian citizens themselves will have to make declarations on transactions worth US$7,600 (R$30,000) or more.

All declarations must be made in the space of a month, and the Treasury will hand out fines ranging between US$25 and US$379 to perpetrators.

Those providing incorrect data may be fined up to 3 percent of the total value of their transactions.

Brazil’s regulatory Securities and Exchange Commission last year introduced legislation that blocks investment fund operators from dealing in cryptocurrencies.

According to Brazilian cryptocurrency media outlet Livecoins, the country’s leading tax authority, the Department of Federal Revenue (RFB), is looking to regulate Brazil’s exchanges.