Brazilian Tax Authorities Register a Record Number of Crypto Statements

Key Takeaways:

  • The RFB, the Brazilian tax body, has released its statistics on cryptocurrency statements for the month of July.
  • A record number of Brazilians—more than one million—declared cryptocurrencies throughout the month, according to the organization’s claims.

The Brazilian tax authority (RBF) revealed that more than one million individuals submitted bitcoin reports in July. In particular, 1,336,715 people provided their crypto information, the highest number of people since reporting became mandatory in 2019.

Brazilian legislation requires all cryptocurrency holders to record their information to the institution, even if their transactions do not take place on centralized exchanges. This provides the organization with the information it needs to make such declarations on a regular basis.

Brazil’s Federal Revenue established legal guidelines on the country’s crypto business on March 3rd, 2019, mandating all cryptocurrency holders to record their information to the regulatory body, regardless of whether they trade on centralized exchanges.

Brazil regularly gives the organization the information essential to launch such declarations. In comparison, only 365,000 people disclosed their bitcoin holdings and purchases to the RFB in 2022.

This figure increased to about 800,000 in June and then increased by more than 50% in July. The August figures have not yet been compiled.

Statistics show that women are becoming more engaged in the use of cryptocurrencies in the country. According to the data presented, the number of crypto transactions done by women increased by 4%, accounting for over 20% of all transactions performed in July.

The four most often used cryptocurrencies listed on tax reports are Tether (USDT), Bitcoin (BTC), USD Coin (USDC), and Ethereum (ETH).

Tether has the most transactions, totaling nearly $1.4 billion (7.8 billion in Brazilian reals), with Bitcoin coming in second with roughly $332 million (1.74 billion in Brazilian reals).

Brazil Ministry Of The Economy
Brazil Ministry of the Economy

XRP, Cardano (ADA), and Solana are also among the top 10 cryptocurrencies on the list (SOL).

Bitcoin is the accelerator for what is now known as Web3, according to Fabio Araujo, Director of the Brazilian Central Bank, who made this claim last month.

He was giving a speech at an occasion that a business school had planned. Araujo went on to explain why he thinks Bitcoin has a lot of potentials. He says Bitcoin is a financial innovation that uses new technologies while praising its features.

Araujo also mentioned that Ethereum, which has smart contracts that provide the financial system with more options, came before BTC technology.

The most recent remarks coincide with the Central Bank of the nation’s efforts to issue Central bank Issued Digital Currency (CBDC)-digital very soon.

Brazil is one of the biggest nations in Latin America. In 2021, over $4.27 billion in purchases of bitcoin reached over $90 billion in transactions.

The Brazilian government is considering legislation to oversee cryptocurrencies in order to effectively monitor them, among other reasons.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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