As things stand, Brazil does not regulate the cryptocurrency market, and transactions involving Bitcoin and other digital coins are not directly supervised by the country’s Central Bank. However, since August 2019, investors, companies, and currency exchanges have been legally obliged to report cryptocurrency transactions when they exceed BRL 30,000 (USD 5,300) per month. And this year, for the first time, Brazil’s Federal Revenue Service has used this data to tighten up its monitoring of income tax evasion.
A survey released by the Federal Revenue Service showed that Brazilian taxpayers declared a total of USD 101.5 billion in cryptocurrency transactions between August 2019 and July 2020. This is the equivalent to roughly five times Brazil’s total gold exports last year.