Brazil considers taxing cryptocurrencies to mitigate the impact of increased financial transaction taxes

ChainCatcher news, according to Bitcoin.com, the Brazilian government is considering taxing cryptocurrency transactions to mitigate the social impact of the increase in the financial transaction tax (IOF).

After the government announced the increase in the IOF tax rate on May 22, House Speaker Hugo Motta proposed including cryptocurrencies in the tax scope during a public speech, but emphasized that the proposal has not been finalized. This proposal has sparked controversy in the Brazilian crypto industry. Mercado Bitcoin's Vice President of Legal Affairs, Vanessa Butalla, pointed out that taxing cryptocurrencies under the current regulations of the Brazilian tax authority is equivalent to taxing investment properties, which lacks legal basis. Daniel de Paiva Gomes, a partner at Paiva Gomes Law Firm, further emphasized that only congressional legislation can classify cryptocurrencies as taxable assets, and the government only has the authority to adjust tax rates and deadlines.