Multiple Brazillian Crypto Exchanges Dominated by Tax Regulations
Brazil’s lawmakers have received support to regulate the crypto market following last year’s allegations of fraud at Atlas Quantum, Zero10, and Trader Group, and February saw some of the results of those actions. Bitcoin.com reported that two major South American-based crypto-currency exchanges were shut down following threats of heavy fines and the immediate effects of the regulations. Let’s check to Multiple Brazillian Crypto Exchanges Dominated by Tax Regulations.
Acesso Bitcoin was one of the exchanges to have their doors voluntarily closed. Crypto news outlet Portal do Bitcoin cited Cofounder Pedro Nunes as saying:
“After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.”
Latoex, another crypto-exchange based in Brazil, faces similar problems. The company is looking into a fine of 100,000-Brazilian real (BRD) if it does not comply with a suspension order issued by the Securities and Exchange Commission of Brazil.
State of Crypto Regulations in Brazil
Since Brazil at this time does not have a specialized law to deal with cryptography, all exchanges come within the purview of the Federal Revenue Department’s Normative Instruction №1888. All companies performing crypto-transactions in Brazil must report them or face fines ranging from BRD 500 to BRD 1500 or from USD 120 to 360.
Both houses of Brazil’s National Congress are looking into proposals to control the crypto industry in the country. A special committee, Bill 2303/2015, analyzes and makes amendments to such a motion. Furthermore, two other bills, PL 3825/2019 and PL 3949/2019, are being discussed in the Senate. As of Feb. 2020, no specific legislation was passed to lay down rules for the Brazilian cryptocurrency market.
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Published at Mon, 17 Feb 2020 13:16:39 +0000
