Brazil’s Tax Authority Observes Record Numbers of Crypto Asset Holders Registering
In August, Brazil achieved the biggest number of institutional crypto ownership of any nation. As a result, Brazilian corporations are embracing cryptocurrency.
The Brazilian Tax Authority claimed that it has registered more than 12,000 entities in the nation whose balance sheets indicate ownership of cryptocurrencies. This is an increase from July when 11,360 firms declared.
However, the number of persons declaring bitcoin holdings decreased by 35,000 in the same month. However, with over 1,300,000 individuals enrolling, the number is enormous, and adoption rates remain quite high.
The data are derived from the RFB’s required monthly report on cryptocurrency ownership, which provides an indication of market direction.
Notably, USDT is the most widely used cryptocurrency in the nation. The dollar-pegged stablecoin had the highest amount of transactions among all digital assets.
In August, the total amount of USDT transactions exceeded $1.4 billion. This occurred throughout 79,836 transactions, with the average transaction value being $18,000.
Bitcoin has the biggest number of transactions. There were 2.1 million Bitcoin transactions with an average transaction value of $130.
Other prominent cryptocurrencies in the nation include USDC, ETH, and BRZ, a stablecoin tied to the Brazilian Real. Traditional financial institutions, such as Santander, have already decided to include cryptocurrencies in their portfolios as a result of the country’s rapid adoption rate.
However, it might also attract crypto firms from beyond the area. The rapidly expanding cryptocurrency exchange FTX has announced a collaboration with Visa to provide crypto debit cards in 40 countries, including a number of Latin American nations.
The faster adoption in the nation is likely owing to the status of the economy, which has increased the desirability of dollar-pegged stablecoins and digital assets.
Nonetheless, legislative clarity on cryptocurrencies, particularly regarding taxes, has also been beneficial. In May, the RFB deemed cryptocurrencies to be taxable assets and applied a capital gains tax on their sale. However, only investors who trade more than BRL 35,000 (about $7,200) are required to disclose and pay taxes on their trades. The Brazilian police recently apprehended a gang that allegedly utilized cryptocurrency to launder money.