According to CoinDesk, Brazil’s cryptocurrency and fintech industry associations—ABcripto, ABFintechs, Abracam, ABToken, and Zetta—issued a joint statement opposing the extension of the Financial Transactions Tax (IOF) to stablecoin transactions. These associations represent over 850 companies in Brazil. The associations argue that subjecting stablecoin transactions to taxation would conflict with Brazil’s existing legal framework and harm the country’s cryptocurrency industry. They contend that this move may violate the Brazilian Constitution and the 2022 Virtual Assets Law. According to a tax auditor at Brazil’s Federal Revenue Service, the monthly volume of cryptocurrency trading in Brazil is approximately $6 billion to $8 billion, with about 90% consisting of stablecoin transactions.
Brazilian Associations Oppose Extending Financial Transaction Tax to Stablecoin Trades
TechFlowShare
Summary
CFT concerns and capital gains tax implications have drawn attention as Brazilian crypto groups oppose extending IOF to stablecoin trades. ABcripto and others argue the move violates existing law and could disrupt compliance with the 2022 Virtual Assets Law. A tax auditor noted $6–8 billion in monthly crypto transactions, 90% in stablecoins, highlighting potential tax base interference. The associations warn the policy could clash with anti-money laundering rules and hamper innovation in the sector.
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