Michaela
The Brazilian government is considering a tax on cryptocurrency used in international payments as it moves to align its crypto-asset transaction rules with the global Crypto-Asset Reporting Framework (CARF).
Key Points
- The development comes amid reports that the White House is currently reviewing a proposal from the Internal Revenue Service (IRS) to join CARF
- According to the Office of Information and Regulatory Affairs, the Treasury Department submitted its proposed rules to the White House on November 14
- Brazil’s consideration of extending taxation to cryptocurrency-based international payments signals a pivotal moment in its effort to modernize financial oversight
According to a report by Reuters, sources familiar with the discussions say the Brazilian government is exploring a tax on cryptocurrency for international payments, with finance ministry officials considering extending the Imposto sobre Operações Financeiras (IOF) to cover certain cross-border digital asset transactions.
The proposed measure would give Brazil’s tax authorities access to citizens’ foreign cryptocurrency account information through the Organisation for Economic Co-operation and Development’s international reporting and data-sharing framework.
The development comes amid reports that the White House is currently reviewing a proposal from the Internal Revenue Service (IRS) to join CARF. According to the Office of Information and Regulatory Affairs, the Treasury Department submitted its proposed rules to the White House on November 14.
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Earlier this year, the White House encouraged both the Treasury and the IRS to adopt regulations that would formally integrate the United States into CARF, a global initiative designed to allow member countries to automatically share information on citizens’ cryptocurrency holdings to help prevent cross-border tax evasion. Several nations, including Japan, France, Canada, the United Kingdom, Germany, and Italy, along with prominent crypto hubs such as Singapore and the UAE, have already committed to participating in the framework.
Brazil’s consideration of extending taxation to cryptocurrency-based international payments signals a pivotal moment in its effort to modernize financial oversight. As the country evaluates its alignment with CARF, policymakers are positioning Brazil to play a more active role in shaping global standards for digital asset transparency.
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The move also reflects a broader push to ensure that crypto activity abroad is treated with the same rigor as traditional financial operations, reducing blind spots that have long complicated enforcement.
While final decisions remain pending, Brazil’s approach suggests a growing recognition that digital assets are now firmly embedded in cross-border commerce. How the country chooses to balance innovation with regulatory clarity will likely influence the direction of its crypto economy for years to come.
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
