Brazil Calls on Leading Cryptocurrency Exchanges to Describe Their Offerings
Brazil is stepping up its game and challenging established players in the cryptocurrency space, such as Binance, Coinbase, OKX, and KuCoin. We are requesting that these exchanges reveal their operational procedures and how they manage partnerships with nearby service providers, particularly with regard to tax-related services.
They are not obligated by Brazilian regulations to disclose their operations, in contrast to local exchanges. When Brazil’s tax office marked this as urgent, the commotion began. The Federal Revenue Service of Brazil’s Andrea Chaves, deputy secretary of inspection, made the following observation: We should be concerned about how they work here, regardless of whether anything is illegal. The fact that this information pertains to Brazilian wealth that is taxable worries us as well.
The revenue service’s risk management coordinator, Wagner Lima, concurred. She stated that in accordance with the rules from 2019, the government is interested in learning how these overseas companies are coordinating with regional service providers.
It’s not like the scrutiny is suddenly there. There has been a significant surge in the Brazilian cryptocurrency market. Brazilians traded a staggering $24.6 billion in cryptocurrency between January and July 2023, a 36.6% increase over the same period the previous year. Interestingly, $2.6 billion of that came from overseas trades, which itself saw a 51.2% increase compared to 2022.
Source : Cryptopolitan