The Brazilian Senate has passed legislation
proposing a 15% income tax on crypto gains from offshore exchanges, awaiting
final approval from the country's President. This proposal is slated for
potential enactment on January 1.
The recently approved bill by the Brazilian Senate
aims to introduce a 15% tax on earnings garnered from cryptocurrencies held on
offshore exchanges, Cointelegraph reported. If authorized, this tax law would impact Brazilians who
earn more than $1,200 from foreign exchanges and investment funds with a single
shareholder.
Brazil's Fast-Paced Crypto Landscape
The anticipated revenue from this tax reform is
substantial, with the government targeting $4 billion for the forthcoming year.
Despite its potential financial implications, the legislation has met
criticism. Brazilian Senator Rogerio Marinho voiced dissent, attributing the
introduction of this tax to poor management by the government.
Brazil's crypto market has witnessed rapid growth,
ranking ninth globally in terms of crypto adoption. The country has seen a
surge in assets under management for spot Bitcoin exchange-traded funds, with
approximately $100 million in holdings.
Brazil's burgeoning interest in digital assets has
attracted global attention, leading various international crypto exchanges to
establish a presence in the country. Apart from Mercado Bitcoin, other players
holding Brazilian payment licenses include Crypto.com and Bitso.
In August, Binance introduced the Binance Pay service to the Brazilian market. The exchange said that the unveiling of this
contactless crypto payment platform aims to revolutionize payment methods,
offering Brazilian users an array of digital asset choices and seamless
transactions.
Crypto Firms Race to Establish Presence in Brazil
Binance Pay's expansion into Brazil signified a leap
forward in the crypto payment sector, catering to the growing demand for
digital currency transactions in the country. With a diverse selection of over
70 cryptocurrencies, including Bitcoin, BNB, Ether, and USDT, the service aims
to provide Brazilian users with a suite of payment options.
Binance Pay boasts zero transaction fees and offers
merchants the flexibility to accept payments in Brazilian Real or directly in
various cryptocurrencies. The crypto exchange teamed up with Weo Games, a
gaming store featuring popular titles like Free Fire, Valorant, and League of
Legends.
This article was written by Jared Kirui at www.financemagnates.com.
