With the rise of new digital tokens on a daily basis in various parts of the world, countries are beginning to see the need to regulate crypto transactions.
However, there is a new twist in the crypto space, as the Brazil government is seeking to get monthly reports on crypto-related transactions just like every other business in the country.
Due to the significant growth of the crypto industry in Brazil, the Department of Federal Revenue of Brazil (RFB), in charge of taxation and revenue in the country has published a draft for crypto-related operations in the country on Tuesday, October 30.
What the RFB Require From Crypto Users
RFB has prompted all crypto exchanges operating within its shores to submit a detailed report of every transaction carried out on a monthly basis.
These documents that will be submitted by the exchanges will state specific information such as- the amount of the transaction, details of the sender, and the receiver’s information.
In a similar manner, crypto transactions that exceed 10,000 Brazilian reals (USD 2,700), carried out by individuals on any foreign crypto exchange within a month are to be documented with the RFB.
Penalty For Non-Compliance
Sanctions are clearly stated in the document, for any exchange or individual that goes contrary to the RFB regulation.
For instance, whenever there is a delay in tax declaration, the defaulter will be made to pay the sum of 1,500 Brazilian reals (USD 400), while those that try to mislead the tax watchdog with wrong information, will be made to pay a fine about 3% of the transaction value.
However, the tax watchdog stated that public opinions concerning the new regulations are welcome, and have given a timeframe from Oct 31 till November 19 to entertain all proposals.
This move is coming a few weeks after a group of Brazilian banks closed some crypto exchange accounts in the country, due to the bank’s inability to verify the nature of their business.