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The Brazilian Tax Service has obliged citizens to report cryptocurrency transactions since August 1

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Starting from August 1, Brazilian citizens are required to report their cryptocurrency transactions to the country’s tax authority-the Department of Federal Revenue (RFB).

According to the
national news agency AgĂȘncia Brasil, information about all transactions using cryptocurrencies must now be transmitted to the RFB in accordance with the rules established by regulatory instruction 1888, submitted
in May 2019.

The new rule applies to individuals, companies and brokerage firms and includes all types of cryptocurrency activities, including buying and selling, as well as donations, barter, deposits, withdrawals and other operations.

According to the new rules, local cryptocurrency exchanges will have to inform the RFB about all transactions, regardless of their size. At the same time, those who use foreign exchanges or brokerage offices, or make P2P transactions, must submit reports if the monthly amount of these transfers exceeds 30,000 Brazilian reais ($7,800).

Violators will be subject to fines ranging from $25 to $130. According to AgĂȘncia Brasil, the RFB is also authorized to charge a fine of 1.5% to 3% of the amount of an unregistered transaction. RFB believes that there are more investors in the digital currency market in Brazil than the second oldest stock exchange in Brazil, B3, which has about 800,000 customers.

Taking new measures, the authorities intend to combat illegal activities such as money laundering, tax evasion and terrorist financing, the publication notes.

Recently, the president of the Federation of Industry of the State of Sao Paulo (FIESP) Paulo Skaf expressed
there are fears that Brazilians may start using cryptocurrencies to avoid paying taxes after the adoption of a new regulation