Stablecoin Tether (USDT) has seen a significant increase in adoption in Brazil, accounting for 80% of all cryptocurrency transactions in the country. according to Based on data from the Brazilian Revenue Agency.
As of mid-October, USDT trading volume in Brazil this year has reached BRL 271 billion (approximately $55 billion), nearly double the country’s Bitcoin (BTC) trading volume of 151 billion reais (approximately $30 billion). It becomes. Stablecoins are cryptocurrencies designed to have a stable value, often pegged to the value of a fiat currency such as the US dollar or Brazilian real.
Although USDT trading has been increasing in Brazil since 2021, it exceeded Bitcoin trading volume for the first time in July 2022, just at the peak of last year’s cryptocurrency industry storm, when cryptocurrency finance company Three Arrows Capital This was the time when Voyager Capital went bankrupt.
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Cryptocurrency winter cut out According to a government report, domestic cryptocurrency trading volume increased by nearly 25% in 2022, ultimately reaching 154.4 billion reais, or about $31 billion.
Brazil’s tax authorities use sophisticated systems that rely on artificial intelligence and network analysis to track the crypto-related activities of its citizens. According to the blog post, the system can detect suspicious activity as well as track the location of individuals trading cryptocurrencies.
The Revenue Agency is also targeting virtual currency investments held by foreign nationals. On October 25th, the local parliament passed a bill that recognizes virtual currency as a “financial asset” for foreign investment tax purposes. From January 2024, a 15% tax rate will apply to foreign income between 6,000 and 50,000 reais (approximately $10,000). Above this threshold, a tax of 22.5% will apply.
Since 2019, crypto exchanges operating in Brazil are required to disclose all transactions of their users to the government. Capital gains from virtual currency sales exceeding R35,000 (~7,000) per month are subject to progressive taxation of 15% to 22.50%.
Global cryptocurrency exchanges such as Coinbase, Binance, Bitso and Crypto.com operate in the country alongside local players such as Mercado Bitcoin and Foxbit.
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