Ana Paula Rabello and Taygra Martins spoke about Brazil and crypto regulation.
Rodrix Digital channel received Ana Paula Rabello, from the “Declaring Bitcoin” Blog, and Taygra Martins, Bachelor of Accounting Sciences and specialist in forex taxation, to talk about the situation in Brazil, in connection with cryptocurrencies and the regulatory environment.
The host of the channel, known as “Rodrix Digital”, explained that the issue of taxes on Bitcoin operations has recently come to the fore. The declaration has different processes depending on the exchange and the country in which it is operating.
“When we think of Bitcoin, the first advantages that come to mind are the freedom it gives us. Freedom that is accompanied by an anti-inflationary monetary rule”, said Rodrix Digital.
“These qualities, added to the fact that it is not geographically limited, make Bitcoin the leading medium of exchange when it comes to low cost. This usability of Bitcoin makes it very valuable. From there arises the possibility of obtaining a profit with it: with a sale and purchase operation,” he added later.
Buying an asset to sell it can trigger the profit-generating factor, a fiscal premise for tax collection, however, is it not moving enough to get rid of taxes?
Rabello’s Part of the Debate
Ana Paula Rabello, from the blog Declaring Bitcoin, in an interview with Rodrix Digital, highlighted that in Brazil, the Federal Revenue requires all investors in cryptocurrencies to declare their assets. In addition, all exchange houses in Brazil must declare to the IRS all transactions of their clients, even transactions below USD 1.
“In Brazil, since IN 1888, the Federal Revenue began to look at all transactions with cryptocurrencies of users in Brazil. This greatly affects the national market from the point of view of the taxpayer, or from the point of view of the companies; they, in turn, have to invest even more in technology to comply with the regulations”, she pointed out.
Martins’ Part of the Debate
Also present at the debate was Taygra Martins, Bachelor of Accounting Sciences and specialist in forex taxation, pointed out that the Brazilian Federal Revenue Service also created a tax for cryptocurrency transactions that, during a month, exceed USD 6,000.
She stressed that, in Brazil, if a user moves more than USD 6,000 on an exchange, adding all the purchase and sale orders, he is obliged to pay a tax and that this tax ends up being an obstacle for new users in the market.
“This is a market with new profit possibilities, but not reporting the tax correctly can make the penalty greater than the profit. So this drives many investors who fear this obligation away from the market,” she said.
She pointed out that the Brazilian Federal Revenue Service recently changed the rules in the country and now, in addition to Bitcoin and cryptocurrencies, users must declare possession even of NFTs or Axies from Axie Infinity.
“In Brazil, the freedom of cryptocurrencies is increasingly regulated by the government. There is no way to escape the lion here,” she concluded.
By Audy Castaneda
