Reuters: Brazil is considering taxing cross-border payments in cryptocurrency

According to Reuters, Brazil is considering taxing the use of cryptocurrencies for international payments to fill the gaps in the country's taxation of conventional foreign exchange transactions.

Sources say that the Brazilian Ministry of Finance is considering expanding the scope of its Financial Transactions Tax (IOF) to include certain cross-border transfers classified as foreign exchange operations by the central bank this month, which use virtual assets and stablecoins. Currently, cryptocurrency transactions are exempt from the Financial Transactions Tax (IOF). Investors are required to pay income tax on capital gains from cryptocurrency assets that exceed the monthly tax-exempt limit.