Brazil’s Crypto Industry Opposes Proposed Stablecoin Tax
- Over 850 companies in Brazil’s fintech and crypto sectors oppose extending the stablecoin tax.
- The proposed financial transaction tax (IOF) could conflict with existing laws, as stated by industry associations ABcripto, ABFintechs, Abracam, ABToken, and Zetta.
- Brazil’s crypto market processes between $6 billion and $8 billion monthly, with stablecoins accounting for about 90% of that volume.
- The country’s Virtual Assets Law classifies virtual assets as distinct from national or foreign fiat currency.
- Stablecoin trading linked to the Brazilian real reached approximately $906 million in the first half of the year.
Industry leaders argue that applying the IOF tax to stablecoin transactions would hinder innovation and violate Brazil’s legal framework regarding currency definitions. They emphasize that any new tax must be legislated rather than imposed through administrative means.
With a rapidly expanding sector and an estimated participation of around 25 million people in Brazil’s crypto ecosystem, the proposed tax could significantly impact this growth trajectory.(Source)
