Is Crypto Regulated In Brazil | All You Need To Know

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In Brazil, cryptocurrencies are considered assets and transactions with them are subject to taxation. If the monthly sales volume of cryptocurrencies exceeds R$35,000, a capital gains tax is applied at rates ranging from 15% to 22.5%. From January 1, 2024, a 15% tax on income from cryptocurrencies stored on foreign exchanges was introduced.

Crypto use in Brazil is growing fast, with more investors, businesses, and everyday users getting involved. To keep up, the government has put rules in place to regulate the market and prevent misuse. If you trade or invest in crypto, knowing the tax laws is a must, since failing to report earnings can lead to penalties. Authorities now require individuals and businesses to declare crypto income properly, making tax compliance more structured. Since regulations keep changing, it’s smart to stay updated on the legal status and tax rules to avoid any surprises. Here’s a breakdown of what you need to know about crypto laws in Brazil.

Risk warning: Cryptocurrency markets are highly volatile, with sharp price swings and regulatory uncertainties. Research indicates that 75-90% of traders face losses. Only invest discretionary funds and consult an experienced financial advisor.

Cryptocurrency regulation in Brazil

Brazil’s crypto rules are changing fast, and missing key details could cost you money.

Cryptocurrency regulation in Brazil

Here are things most beginners don’t realize:

Exchanges must register with the central bank. Since 2024, only platforms approved by Brazil’s Central Bank can legally operate. If you use an unregistered one, you could lose access to your funds without warning.
Crypto is taxed like property, not money. If you sell crypto for a profit, you owe capital gains tax — just like selling real estate. Many traders ignore this, but Receita Federal tracks transactions, and unpaid taxes can lead to penalties.
Big transactions must be reported. If you move more than R$30,000 in crypto, you have to report it, even if it's just a private sale. Ignoring this could trigger a tax audit or fines.
Staking and lending have unclear rules. You can earn passive income through staking and lending, but the law hasn’t caught up yet. Some platforms try to follow investment laws, while others don’t — meaning you could face unexpected taxes later.
Foreign exchanges come with risks. You can use international platforms, but if they get shut down or restricted, you may not be able to withdraw your money. Brazilian laws don’t protect funds held abroad.
Banks can freeze crypto-related accounts. Even though crypto is legal, banks can block accounts linked to unregulated exchanges. If your bank sees your transactions as risky, they might shut down your account with little notice.

Legislative framework: law no. 14.478/2022

Brazil’s crypto law (Law No. 14.478/2022) says that virtual assets are digital valuables that can be traded or used for payments. However, it does not cover traditional currencies, electronic money, or assets already regulated under other laws.

Crypto platforms (VASPs) must get approval from a federal agency before operating in Brazil. The law also adds new penalties for fraud involving cryptocurrencies, stocks, or other financial assets.

Key regulatory authorities

Under Law No. 14.478/2022, the government decides which federal agencies will oversee and regulate crypto businesses. While the law doesn’t name specific regulators, the Brazilian Central Bank (BCB) and the Securities Commission (CVM) are expected to take charge.

Rules for crypto exchanges and service providers. Businesses handling crypto must follow key rules:

Fair competition and open market access.
Transparency, ethical management, and risk control.
Strong cybersecurity and personal data protection.
Safeguarding consumer rights.
Keeping customer funds secure.
Reliable and efficient transactions.
Preventing fraud, illegal financing, and other financial crimes.

Crypto platforms must get approval before launching in Brazil. If a company is already licensed by the Central Bank of Brazil, it can offer crypto services as long as it follows the new rules.

Cryptocurrency taxes in Brazil

In Brazil, the taxation of cryptocurrency transactions is regulated by a number of laws aimed at ensuring transparency and compliance with tax obligations for both individuals and legal entities.

Capital gains Tax

Brazil taxes crypto gains differently depending on transaction size and reporting methods. Here’s what you need to know.

Tax-free threshold exists, but it's tricky. Gains below BRL 35,000 per month are exempt, but if you sell other assets alongside crypto, your gains might become taxable.
P2P trades aren’t automatically exempt. Many assume person-to-person (P2P) trades avoid taxes, but the Receita Federal requires these transactions to be reported if monthly gains exceed BRL 35,000.
Foreign exchanges can complicate taxes. If you use offshore exchanges, your tax is based on the exchange rate at the time of sale, and you might be liable for additional remittance taxes when bringing funds back to Brazil.
Progressive tax rates apply to crypto sales. Capital gains tax ranges from 15% to 22.5%, depending on profit. Anything above BRL 5 million hits the highest tax bracket.
Mining and staking profits count differently. Unlike trading profits, staking and mining income is classified as regular income, taxed based on Brazil’s progressive income tax brackets, not capital gains rates.
Monthly reporting is a must. Even if you don’t owe taxes, failing to report crypto transactions can lead to fines ranging from BRL 100 to BRL 1,500 per month.

New tax rules for crypto assets held abroad (from 2024)

As of January 1, 2024, updated tax rules regarding crypto assets held outside the country came into effect in Brazil. According to the new provisions:

Income up to R$6,000 is exempt from taxation.
Profits from R$6,000 to R$50,000 are taxed at a rate of 15%.
Profits over R$50,000 are taxed at a rate of 22.5%.

These changes are aimed at eliminating the difference in taxation between crypto assets held domestically and abroad. The state is trying to ensure a level playing field for all taxpayers.

Tax liability for individuals and legal entities

Brazil’s crypto tax laws have some lesser-known tricks that can save you money — if you know how to work with the system.

You don’t always have to report crypto sales. If you keep your total sales under BRL 35,000 per month, you’re legally in the clear and don’t need to report anything. By spreading out sales instead of dumping all at once, you can sidestep the reporting rule.
The more you profit, the more tax you pay — but there’s a sweet spot. Crypto capital gains tax in Brazil isn’t a flat rate — it increases the more you earn. If your total gains stay under BRL 5 million, you can avoid the highest 22.5% bracket. Smart investors time their withdrawals to stay in lower brackets.
Crypto-to-crypto swaps aren’t tax-free, but you can work around it. Brazil’s tax authority treats trading one crypto for another as a taxable event. But if you strategically match gains with losses, you can cancel out taxable profits and pay less tax overall.
Miners and stakers can turn their earnings into tax write-offs. If you mine or stake crypto, you can register as a business instead of an individual. This lets you deduct electricity bills, hardware costs, and even internet expenses — something regular traders can’t do.
Giving or inheriting crypto? You might owe tax. Many think gifting crypto is tax-free, but in Brazil, gifts and inheritances can be taxed up to 8%, depending on the state. A well-planned family trust can help reduce this burden.
Spending crypto is a tax trap. If you use Bitcoin or any other crypto to buy something, you could owe tax on any gains since the time you acquired it. Even if you don’t convert it to cash, the tax still applies.
Using foreign exchanges doesn’t mean you escape taxes. Some traders think they can avoid Brazilian tax rules by trading on offshore platforms. But if you have more than BRL 140,000 in foreign crypto accounts, you must report it to the Brazilian Central Bank — or risk fines.

How to declare cryptocurrency taxes in Brazil

In Brazil, declaring cryptocurrency taxes is mandatory for individuals and legal entities involved in digital asset transactions. Compliance with the established procedures allows you to avoid penalties and ensures compliance with tax laws.

Who is required to file a tax return

Everyone in Brazil who deals with crypto must report their transactions, whether they’re individuals or businesses. If your total trades exceed R$30,000 (about $7,600) in a month, you need to submit details to Receita Federal.

Cryptocurrency declaration procedure

To declare cryptocurrency transactions, you must complete the following steps:

Register in the e-CAC system. Log in to the virtual service center (e-CAC) on the official Receita Federal website.
Provide transaction details. Report all cryptocurrency transactions that exceed the set threshold every month. Include key details such as: date and type of transaction, amount and type of cryptocurrency, counterparty information.
Meet the reporting deadline. Submit the required information by the last business day of the month following the transaction month.
Ensure accuracy to avoid issues. Accurate and timely declarations help prevent penalties and maintain transparency in financial records.

Possible fines for non-compliance with tax requirements

Violation of obligations to declare cryptocurrency transactions can lead to serious consequences:

Fines. Financial sanctions, the amount of which can significantly exceed the amount of unpaid taxes.
Penalties. Additional charges for each day of late payment of taxes.
Criminal liability. In cases of deliberate tax evasion, criminal liability may be imposed, including imprisonment.

To prevent such consequences, we recommend that you carefully follow the declaration procedures and promptly pay taxes related to cryptocurrency transactions.

Compliance and future trends

In recent years, Brazil has been actively developing its cryptocurrency legislation, seeking to adapt it to changing market conditions and global trends.

Strengthening regulation: possible changes in laws

The Central Bank of Brazil is moving to regulate stablecoins and asset tokenization, aiming to enforce new rules by 2025. Central Bank chief Roberto Campos Neto pointed out that the rising demand for stablecoins in the country is largely tied to tax evasion and illicit activities.

In October 2024, Brazil saw a sharp rise in cryptocurrency imports, reinforcing concerns over the need for stricter oversight on digital transactions.

The Impact of global trends on the brazilian crypto market

The Brazilian crypto market is evolving rapidly, shaped by unique global influences that many overlook. Here’s what really matters for beginners:

Regulatory shifts in major economies matter. When countries like the US or China tighten crypto laws, Brazil often sees an influx of foreign users and projects seeking a friendlier environment. This creates short-term booms but also regulatory uncertainty.
Latin America’s remittance boom fuels demand. Many overlook how crypto adoption in Brazil is linked to remittance flows from other Latin American countries. Stablecoins and Bitcoin are replacing traditional remittance services, reducing fees and transaction times for millions.
Commodity-backed crypto is gaining traction. Brazil’s role as a global commodities giant is inspiring local projects that tokenize real-world assets like soybeans, coffee, and even gold. This is turning crypto into a bridge between traditional trade and decentralized finance.
High inflation drives DeFi interest. Unlike in the US, where DeFi is often seen as speculative, many Brazilians use decentralized lending and yield farming to hedge against local currency devaluation, making DeFi more of a necessity than a luxury.
Partnerships with global payment giants change access. Companies like Mastercard and Visa are integrating crypto payments in Brazil faster than in many other regions. This is making crypto spendable in everyday transactions, pushing mass adoption beyond just trading.
Political and economic instability pushes Bitcoin adoption. Political shifts and economic crises in Brazil often drive new waves of Bitcoin adoption, not as an investment but as a financial safe haven. Each crisis has led to noticeable spikes in local crypto volumes.

Tips for preparing for future changes

Given the upcoming regulatory changes, market participants are advised to:

Monitor legislative updates. Regularly monitor legislative changes related to cryptocurrencies to adapt your activities in a timely manner.
Strengthen internal compliance. Develop and implement procedures to ensure compliance with new requirements, especially in the area of anti-money laundering and combating the financing of terrorism.
Train staff. Provide regular training to employees on new regulatory standards and best practices in the cryptocurrency space.
Consult with experts. Consult with professional consultants to assess risks and develop compliance strategies. To buy cryptocurrencies from verified brokers, you can check out the following table:

Best crypto exchanges in Brazil
	Coins Supported	Spot Taker fee, %	Spot Maker Fee, %	TU overall score	Open an account
Bybit	638	0,1	0,1	9.2	Open an account Your capital is at risk.
MEXC	2276	0,05	0	9.1	Open an account Your capital is at risk.
OKX	329	0,1	0,08	8.9	Open an account Your capital is at risk.
Binance	415	0,1	0,1	8.7	Open an account Your capital is at risk.
Bitget	831	0,1	0,1	8.65	Open an account Your capital is at risk.

Taking a proactive approach to compliance will help minimize risks and ensure sustainable business development in the evolving cryptocurrency regulation environment in Brazil.

Lowering crypto taxes in Brazil with legal entities

Most crypto traders in Brazil don’t realize they can legally pay less tax just by setting up their income the right way. If you trade under a Pessoa Jurídica (legal entity) instead of as an individual, you might lower your tax bill from the usual 15%-22.5% capital gains tax to a smaller corporate tax rate. Plus, businesses can write off crypto-related costs as business expenses — things like electricity, internet bills, and even hardware depreciation. Many assume you need to be a big company to do this, but even small traders can register as a business and unlock these tax benefits.

Another smart move that few traders know is using tax-friendly offshore investment funds. Instead of holding crypto directly, some experienced investors keep their assets in international funds, which push back taxes until they bring money to Brazil. This means your profits grow without immediate tax cuts — something high-net-worth investors use all the time, but regular traders often overlook. By working with a tax advisor who knows these structures, you can make sure you’re paying the least tax legally possible while following Brazil’s tax rules without overpaying.

Conclusion

Brazil continues to build a transparent and structured cryptocurrency regulation system, setting strict requirements for service providers and introducing mandatory taxation of digital asset transactions. The new tax rules apply to both domestic and foreign crypto assets, requiring users to comply with reporting requirements and pay taxes on time. Further tightening of controls over stablecoins and international transactions is expected, which may affect the work of crypto exchanges and investors. To minimize risks, it is recommended to monitor changes in legislation, comply with income declaration requirements, and consult with financial experts. Companies and individuals working with cryptocurrencies must implement compliance systems and adhere to international anti-money laundering standards. The long-term development of the Brazilian crypto market will depend on the balance between government regulation and support for innovation in digital finance.

FAQs

How are cryptocurrencies affecting the Brazilian financial system?

Cryptocurrencies are facilitating the development of digital payments, increasing access to financial services, and attracting international investors. However, their use for informal payments and cross-border transfers complicates the control of money flows, forcing regulators to introduce additional oversight measures.

What are the safest ways to store cryptocurrencies?

To protect assets, it is recommended to use hardware wallets and offline storage with multi-factor authentication. Online wallets and exchange accounts are convenient, but they are subject to the risk of hacking, so it is better to store only funds for operational transactions on them.

What cryptocurrency transactions are not taxed in Brazil?

Transactions of less than R$35,000 (about $7,000) per month made by individuals are not subject to capital gains tax. However, this rule does not apply to companies and professional traders whose activities are related to regular trading.

Can cryptocurrency be used to pay for goods and services in Brazil?

Some businesses accept cryptocurrency as an alternative payment method, but legally, digital assets are not considered legal tender. Such transactions may be subject to a tax similar to a foreign exchange tax if the crypto asset is converted into real money.

Team that worked on the article

Maxim Nechiporenko has been a contributor to Traders Union since 2023. He started his professional career in the media in 2006. He has expertise in finance and investment, and his field of interest covers all aspects of geoeconomics. Maxim provides up-to-date information on trading, cryptocurrencies and other financial instruments. He regularly updates his knowledge to keep abreast of the latest innovations and trends in the market.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).