Brazil’s tax authority, the Special Department of Federal Revenue of Brazil (RFB), is set to summon foreign cryptocurrency exchanges operating within the country to clarify their operations and cooperation with local service providers, according to a new report from Reuters.
Officials from the agency told Reuters that an ordinance expected to be issued this week would request detailed information from these exchanges. Among the foreign exchanges operating in Brazil, some of which offer Portuguese-language websites, are Binance, Coinbase, OKX, and KuCoin.
Wagner Lima, the revenue service’s risk management coordinator, claimed that the Brazilian government wants to understand the level of cooperation between these exchanges and local service providers.
Andrea Chaves, deputy secretary of inspection at the RFB, emphasized the need to understand these exchanges’ operations and ensure no illegal activities are involved. She highlighted the importance of tracking Brazilian wealth subject to taxation.
Meanwhile, this move comes a few days after Brazil’s Central Bank announced that it would split the process of regulating crypto-assets and virtual asset service providers into phases, with regulatory proposals expected by the end of this year.
Nagel Lisanias Paulino, who is part of the Financial System Regulation Department at the BC, stated in the official bank announcement that the new regulatory frameworks will broaden the information on improper practices involving digital assets and, thus, safeguard consumers and industry participants from fraudulent activities and scams.
“The regulation aims to offer minimum requirements for virtual asset service providers to perform their activities, also dedicating themselves to providing appropriate practices when dealing with their clients,” Paulino stated.
Notably, the Brazilian Central Bank (BC) was empowered by Decree 11,563 of 2023 to strengthen the protective measures for the country’s virtual asset investors and, thus, its current attempts to develop comprehensive laws for its digital asset industry. The BC’s role will be complemented by other entities, such as Brazil’s Securities and Exchange Commission (CVM) and the RFB.
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