Brazil Considers Stablecoins as Foreign Currency to Prevent Tax Evasion and Increase Revenue

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Brazil Considers Stablecoins as Foreign Currency to Prevent Tax Evasion and Increase Revenue

Bitget-RWA2025/11/18 12:06

By:Bitget-RWA

- Brazil expands IOF tax to cross-border crypto payments, targeting stablecoins to close regulatory gaps and boost revenue. - Central Bank's 2026 framework classifies stablecoin transactions as forex, including international payments and wallet transfers. - USDT dominates 66% of Brazil's $42.8B crypto volume, surpassing Bitcoin's 11%, as authorities combat forex evasion and money laundering. - Global alignment emerges with U.S. planning 2026 crypto reporting rules, while Brazil tightens oversight of foreig

Brazil plans to broaden its financial transaction tax (IOF) to cover international cryptocurrency payments, aiming to address regulatory loopholes and increase government income,

as stated by two individuals

with knowledge of the matter. The Finance Ministry is weighing the extension of the IOF to digital asset operations, especially stablecoins, which the central bank has recently identified as foreign exchange (forex) activities

sources report

. This would represent a notable change, since crypto transactions are currently not subject to the IOF, although investors already pay capital gains tax when their profits surpass monthly limits

according to available data

Under the central bank’s updated regulations, which will be enforced starting February 2026, stablecoin transactions—including buying, selling, and exchanging—will be regulated as forex operations. This covers cross-border payments, card transactions, and transfers to personal wallets

as reported

. The decision comes amid worries that stablecoins like Tether’s USDT are being used to bypass standard forex controls.

Data from the federal tax agency shows

that crypto trading in Brazil reached 227 billion reais ($42.8 billion) in the first six months of 2025, marking a 20% rise from the previous year, with

USDT

making up about two-thirds of this activity. In comparison,

bitcoin

accounted for only 11% of the total

based on the same figures

Authorities stressed that the tax extension is intended not just to raise funds, but also to fight money laundering and regulatory evasion. A Federal Police official pointed out that cryptocurrencies are being used to dodge import taxes,

resulting in an estimated $30 billion loss

each year in unpaid import duties. “If you import equipment, declare 20% officially, and send the remaining 80% through USDT without paying customs fees, the IOF is the least of your concerns,” the official commented

according to reports

On a global scale, Brazil’s strategy reflects a wider push to harmonize crypto taxation. The United States is evaluating a plan to join the Crypto-Asset Reporting Framework (CARF), an international project involving 72 nations—including Brazil—to exchange crypto transaction information and fight tax avoidance

industry insiders say

. The U.S. is also preparing to introduce comparable regulations domestically in 2026,

which will require platforms to submit comprehensive transaction records

using 1099-DA forms.

Brazil’s Finance Ministry has yet to make an official statement on the IOF expansion, but tax officials have already imposed stricter reporting rules on overseas crypto service providers operating within Brazil

officials confirm

. The central bank’s move to classify stablecoins as forex assets is viewed as a key step toward establishing formal oversight,

helping to ensure that “stablecoins are not used for regulatory arbitrage”

in relation to the conventional forex market.

With the new regulations coming into force in February, observers are keen to see if these tax policies will successfully close loopholes and provide the much-needed revenue to help Brazil meet its fiscal objectives.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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