In the latest move to close existing “loopholes” in the country’s tax system related to foreign-exchange transactions, Brazil is reportedly exploring the possibility of imposing taxes on cryptocurrency transactions used for international payments.

Cross-Border Crypto Transfers As Forex Operations?

According to two officials familiar with the discussions who disclosed the information to Reuters, the Finance Ministry is considering expanding its financial transaction tax (IOF) to include certain cross-border transfers involving crypto assets, such as stablecoins, which are classified as foreign-exchange operations.

Currently, crypto transactions are not subject to the IOF tax, although investors are required to pay income tax on capital gains that exceed a specific monthly exemption

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