Brazil Suggests Taxing Stablecoins to Address $30 Billion Shortfall and Meet International Norms

Brazil Weighs Tax on Overseas Crypto Transactions to Meet Global Standards and Address Fiscal Shortfalls

Brazil is moving forward with plans to impose taxes on international cryptocurrency payments, aiming to bring its regulations in line with global practices and recover substantial tax revenue lost to unchecked digital asset transfers. Authorities are reportedly considering broadening the scope of the Imposto sobre Operações Financeiras (IOF)—a tax on financial transactions—to cover stablecoin remittances and other crypto-related cross-border payments. If approved, these changes would be implemented under new central bank guidelines beginning in February 2025,

as Brazil’s crypto sector continues to expand rapidly.

The planned tax would categorize stablecoin operations—including those using Tether’s USDT—as foreign exchange transactions, subjecting them to the same regulatory scrutiny as conventional currency exchanges. This adjustment

, which now treats stablecoin buying, selling, and trading as forex activities. With stablecoins making up almost two-thirds of Brazil’s crypto trading volume in the first half of 2025, in lost tax and customs revenue.

This initiative brings Brazil in line with the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), a worldwide protocol for exchanging tax data on digital assets. On November 14, Brazil’s Federal Revenue Service introduced updated reporting requirements to comply with CARF, granting authorities access to citizens’ offshore crypto assets through an international information-sharing system. This mirrors steps taken by the U.S., European Union, and United Arab Emirates,

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Regulatory bodies have raised alarms about stablecoins being exploited for unofficial currency trading and illicit financial activities.

and use stablecoins to transfer the remaining funds, thereby evading customs taxes—a practice that costs the government billions each year. The updated tax policy, together with tighter anti-money laundering (AML) regulations for crypto platforms, is intended to deter such schemes and bring digital assets into the formal economy .

Political friction has surfaced as legislators discuss the measure. A bill put forward by Eros Biondini proposes exempting long-term crypto holders from capital gains taxes, arguing that the current tax burden is too heavy. However,

, citing ongoing confidential negotiations. Experts point out that while the tax could make stablecoins less attractive for remittances, it may also provide vital fiscal support as Brazil contends with budget constraints .

The central bank’s broader regulatory reforms—which include mandatory licensing for crypto exchanges and enhanced consumer protections—complement the proposed tax. These actions demonstrate Brazil’s intent to strengthen oversight of its digital asset market,

, marking a 20% increase from the previous year.

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