Brazilian Tax Service Asks All Brokers To Declare Clients’ Cryptocurrency Transactions

The Secretariat of  the Department of Federal Revenue of Brazil  (RFB) has obliged brokers to provide a monthly report on all cryptocurrency transactions of clients.

On the website of the Secretariat of Federal Revenues of Brazil (RFB) was published “regulatory instruction” for filing declarations on cryptocurrency income in the period from October 31 to November 19.

According to the new rules, all brokerage firms will have to send monthly all information about their clients’ transactions in the national currency, including the value and type of cryptocurrency. Individuals and legal entities will also have to declare within a month the purchase of cryptocurrencies bypassing local brokerage firms, if it exceeds 10 000 reals.

As a punishment for failure to comply with the instructions of the Department, a fine of up to 3% of the exchange amount is provided. In case of late submission of the Declaration, each month will be charged a fine of 500 to 1500 reals.

According to the Agency, only in December 2017, the turnover of crypto assets amounted to more than 4 billion reals with an average transaction of 49 000 Brazilian reals.

Earlier, on August 27, the Agency sent a form to Brazilian crypto-exchanges to fill in, which crypto-exchanges had to fill out within 5 days, saying that the nature of the data will be strictly confidential to protect the “integrity of the financial system”. According to the publication Portal do Bitcoin, one of the crypto-exchanges reported the full provision of information, the other did not respond to the letter, and the third did not receive any request.