PANews, March 15: 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, Brazil’s monthly cryptocurrency market volume ranges from $6 billion to $8 billion, with approximately 90% consisting of stablecoin transactions.
Brazilian crypto associations oppose financial transaction tax on stablecoin trading
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Summary
Brazilian crypto and fintech groups, including ABcripto and ABFintechs, oppose expanding the financial transaction tax (IOF) to stablecoin trading, arguing it conflicts with the 2022 Virtual Assets Law and stablecoin regulations. A tax auditor noted $6–8 billion in monthly crypto transactions, 90% of which involve stablecoins. The groups warn that this move could complicate capital gains tax rules and harm the sector.
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