Brazil Tightens Oversight of Foreign Crypto Exchanges
Foreign cryptocurrency exchanges are being closely monitored by the Brazilian tax authorities within its borders. Why? To promote increased oversight and transparency in this fast-growing digital asset space.
They want to have a better understanding about these international platforms as the country’s citizens continue to get more involved in virtual money. New rules that will be announced next week will force Binance, Coinbase, Kraken and others to explain their operations or address customer complaints in Brazil.
Tax officials are very serious about this issue. They want such firms to comply with local requirements including tax codes and anti-money laundering laws. This is not strange as Brazil’s reported crypto holdings rose by 36.6% year-on-year in January-July 2023 ($24.6 billion) – a figure that is quite staggering.
Andrea Chaves deputy secretary at the Brazilian Revenue Service explains, “We need to ensure these exchanges pay the right taxes and that they do not involve themselves into any illegal practices.” “Further, we also want to make certain that all services offered by them to Brazilian clients meet proper standards.”
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The concern is some of these platforms might sidestep local regulations leading to unrecorded incomes and facilitating fraudulent financial transactions; therefore, investigations encompass local service providers’ relationships with foreign exchangers.
The regulation coming up will require extensive information from exchanges but don’t worry; no customers’ personal details or transactions will be included since it respects privacy laws in Brazil.
With regards to crypto holdings declared via overseas bourses which have spiked 51.2% over the last year, it can clearly be seen how much these fora influence the local market of Brazil. While preparing a full-fledged regulatory framework due for completion by late 2024, authorities plan on tightening control over those companies more actively.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
