In line with a recent ‘report‘, the Regulatory authority in Brazil RFB [Department of Federal Revenue of Brazil] has published new rules requiring the cryptocurrency exchanges to inform the regulator regarding users’ transactions so as to spot the tax fraud.
The new rules clarify how cryptocurrency trading platforms within Brazil should adopt to the new rules to report regarding the movements of users’ cryptocurrency funds to the department, and follow the requirements of Normative Instruction 1.888/2019 ‘revealed‘ earlier in the month of May, this year.
Moreover, the agency adds that the cryptocurrency exchanges operating within Brazil should provide all the data regarding all transactions processed by their system, whereas those platforms based abroad should provide data”whenever the monthly value of the operations, alone or collectively, exceed 30,000.00 Brazilian reals [$7,750 USD].”
Apart from the volume of a transaction, exchange operators should conjointly data like the nationality of the cryptocurrency holder, their residence or domicile, registration ID along with the crypto assets utilized via in a transaction.
Also, all the required data should be provided within a specific period of time, “until 23:59:59, Brazilian time, on the last calendar month that during which the operation occurred.” The new rules are expected to come into effect from Sept. 2019.
When the RFB declared that it was forming the necessities for ‘crypto‘ exchanges, Ismair Junior Couto, legal director of the Bitcoin Banco Group – Brazil’s leading cryptocurrency broker – added the initiative had long been expected. He stated that Bitcoin Banco had created provisions to provide the required data to authorities.
Earlier on 31st May, the President of the Chamber of Deputies of Brazil ‘ordered‘ the formation of a commission to consider about cryptocurrency ‘regulations‘ within the country. The commission are going to be tasked with regulating native activities around Bitcoin [BTC] along with other crypto assets, and is reportedly expected to be composed of around 34 members in accordance with the House Rules of Procedure.