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Brazil's tax regulator, the Department of Federal Revenue, is one of the countries in charge of debt laundering and bribery.
Brazillian Cryptocurrency Exchanges to Monthly Trading Data to Authorities Report
Citing the examples of Australia and South Korea, the Brazillian authorities announced they will require monthly reports from local currency.
The document points to a significant increase of cryptocurrency trading in Brazil. In 2017, the number of users accounts on the Sao Paulo stock exchange.
Annual Bitcoin trading volume has jumped from 44.8 million BRL ($ 12.12 million at current rates) in 2014, to BRL 113 million ($ 30.57 million) in 2015. Volumes only got larger in 2016 (BRL $ 363.2 million or $ 98 million at current rates) and 2017 (BRL 8.3 billion, which is $ 2.25 trillion at current rates).
It is important to note that the value of the country's currency has fallen during the period of December 2017, around the $ 20,000 area.
Daily trading volumes on Brazil's largest digital currency exchanges, registered on July 10, 2018, also reveal a substantial cryptocurrency market. Mercado Bitcoin daily volume was 3.1 million BRL ($ 840,000), with Foxbit reaching 1.2 million BRL, and Bitcointrade reporting 2.2 million BRL ($ 600,000). BrasiliEX and Bitcointoyou facilitated the trading of 790,000 and 974,000 BRL in one day, respectively, which is $ 213,000 and $ 263,000.
The document also shows that foreign exchange transactions are subject to capital gains tax, at a rate of BRL $ 5 million up to 22.5% on an amount that is at least BRL $ 30 million gold more. Money laundering and corruption is a concern, especially now that Brazilians have just elected Jair Bolsonaro for President, a populist who pledges to end corruption.
"With the imposition of an ancillary obligation for exchange of information and the payment of debt, who intend to avoid taxes.
In Australia, exchanges are obliged to report users' identities for anti-money laundering purposes and to fight the funding of terrorism. In South Korea, tax authorities have collected the equivalent to 24 percent of cryptocurrency. The regulator requires segregated accounts and KYC processes.
Brazil's main regulatory authority, the CVM, has published a comprehensive document that offers guidance to fund managers looking for additional cryptocurrencies to their portfolios. The documents warn of illegal operations relating to money laundering, fraud, and price manipulation.
The regulator recommends fund managers to only use regulated cryptocurrency operators and independent auditors. The agency also publishes a guide providing guidance to help managers detect and prevent fraudulent digital assets.
Featured image from Shutterstock.
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