In August, Brazil registered the highest number of firms and institutions that adopted cryptocurrency. The Brazilian Tax Authority (RFB) reports that most Brazilian firms and institutions use USDT, Tether’s stablecoin, to move significant volumes.
Institutions in Brazil Are Holding More Crypto
The specific economic problems in Latam countries cause institutions in these countries to be attracted to cryptocurrency. The Brazilian Tax Authority recently registered an increase in the number of institutions adopting cryptocurrency.
Per the August statements, more than 12000 firms in Brazil affirm relying on crypto as their treasury. This is an increase from the number recorded in July, 11,360 companies. Contrastingly, the statement recorded a decrease in the number of individuals relying on cryptocurrency; that is, 35000 reports were recorded in August compared to July.
However, this indicator is still high; more than 1,300,000 people admitting cryptocurrency makes up a considerable part of their assets. To track crypto’s market and growth, the Brazilian Tax Authority informs the market about monthly shifts in the number of introductory statements concerning crypto ownership.
USDT as The Most Used Crypto In Brazil
Tether’s stablecoin, USDT, is one of the most used tokens in Brazil, especially when talking about the value moved. In August, USDT was used to move more than $1.4 billion across 79,836 operations, adding to about $18000 per transaction. However, according to the records, Bitcoin topped USDT when comparing the numbers of transactions made simultaneously.
BTC featured in many transactions, more than 2.1 million, in August. In contrast, the amount of cash involved was less, totaling about $130 per transaction. Brazilian real-pegged stablecoin, Ethereum, and USDC also showed significant levels of movement, according to the statements recorded by the Brazilian Tax Authority.
These numbers indicate that Brazil is experiencing tremendous growth in its crypto market, both institutional and individual. Besides, the Brazilian Tax Authority reported an increase in individuals’ cryptocurrency ownership statements. As a result, many fintech firms like Nubank and Picpay and traditional banks like Santander announced their plans to include cryptocurrency services in their portfolio.
Brazilian Tax Authority (RFB)
The Federal Revenue of Brazil is part of Brazil’s Finance Ministry, which administers all forms of federal taxation of firms and individuals and foreign trade taxation. Additionally, RFB advises Brazil’s executive branch concerning tax policy formation, including; piracy, tax evasion, commercial fraud, illegal trading activities, drug trafficking, and customs abuses.
Many Brazilians turned to cryptocurrencies in 2021, around 10 million Brazilians, according to CoinMarket. Accordingly, legislators proposed regulations for the crypto market in the past several years and created a regulatory ‘sandbox.’
Brazilian Lawmakers also passed legislation needing “virtual asset service providers to follow rules of communication of financial transactions, with identification of customers and recordkeeping.”
The Brazilian Securities and Exchange Commission approved several crypto ETFs. The government additionally declared that bitcoin is an asset and is subject to capital gains taxes. Moreover, the existing AML laws stretch to virtual currencies in some contexts.
The Special Department of Federal Revenue of Brazil published a document about cryptocurrency taxes in the nation. The Central Bank Of Brazil said that the digital real could be introduced in Brazil in 2023.