In a bid to catch users who try to commit tax fraud using cryptocurrencies, the Department of Federal Revenue of Brazil (RFB) introduced new regulations this week according to a report by Cointelegraph Brazil.
The new rules specifically apply to cryptocurrency exchanges and trading platforms who now have to report to the RFB information regarding how users transact cryptocurrency using their services.
Precisely, the RFB now requires that all local exchanges provide it with data about all transactions that a user carries out on their system. The same law applies to foreign exchanges serving the Brazilian audience but only if “the monthly value of the operations, alone or jointly, exceed 30,000.00 Brazilian reals [$7,750]."
Additionally, the exchanges would not only provide data regarding the size of the crypto transactions but also private information such as the nationality of the user, their residence and the specific cryptocurrencies they transacted.
The RFB also stipulated a timeframe for submitting the required data, that is, "until 23:59:59, Brasilia time, on the last calendar month subsequent to that in which the operation took place."
The new rules, however, would not go into force until September 2019 according to the report.
Regulating Crypto Trading Platforms
Interestingly, the latest development in Brazil only marks one of the several efforts already underway in different countries to provide rules for cryptocurrency trading venues.
We reported on a global scale that the Financial Action Task Force (FATF) would tomorrow introduce new rules for crypto exchanges. In the same manner, the International Organization of Securities Commissions (IOSCO) released recommendations for countries looking to regulate these entities.