Brazil’s Cryptocurrency Sector Responds to New Tax Measure
In Brazil, the cryptocurrency sector is uniting in a concerted effort to challenge a new Provisional Measure aimed at altering the existing tax framework for digital currencies. This maneuver, known as Provisional Measure 1,303/2025, seeks to widen the income tax scope to include all cryptocurrency holders, raising concerns among industry experts about its long-term impact on crypto adoption.
Details of the Proposed Tax Changes
Currently, this measure is in effect but awaits Congressional approval for an extension of its validity. If enacted, it would impose a uniform tax rate of 17.5% on crypto income, replacing a previous graduated tax structure that started at 15% for amounts exceeding 35,000 reais (approximately $6,500), which also featured lower thresholds for tax exemptions.
Industry Concerns and Reactions
Julia Rosin, who leads public policy initiatives at Bitso, emphasized the industry’s commitment to preserving the current exempt thresholds. She warns that removing these exemptions would significantly alter the crypto landscape in Brazil, undermining market sustainability.
Her sentiment is echoed by industry insiders, who believe that a staggering 90% of Brazilian crypto users would be negatively impacted by this tax overhaul.
Trends in Cryptocurrency Transactions
Furthermore, Guilherme Sacamone, CEO of Okex, highlighted a worrying trend where almost 60% of cryptocurrency transactions in Brazil are already being conducted through foreign platforms. He urged that the goal should be to attract these transactions back to Brazil rather than letting them continue to flow overseas.
Future Implications and Strategic Initiatives
Adding to the urgency, industry advocates recognize that the Provisional Measure is unlikely to be overturned, particularly as it also addresses broader regulations concerning financial transaction taxes. Meanwhile, Congress is poised to examine the proposal for establishing a strategic bitcoin reserve, which could position Brazil as a leader in cryptocurrency innovation within Latin America.
Conclusion
As discussions about these critical reforms unfold, the Brazilian crypto community is heavily invested in lobbying against the tax measure, aiming to secure a favorable environment for digital currency exchange and use in the country.
