Brazil Confirms IOF Tax On Crypto After Months Of Debate

Brazil has formally announced that its IOF tax, which applies to financial operations, will also cover cryptocurrency transactions. This ends years of uncertainty about how digital assets fit into the national tax code.

The confirmation came from Executive Secretary Dario Durigan, who stated that Brazil will implement taxation and regulation for cryptoassets through a normative act, avoiding the need for congressional approval.

The decision follows concerns that crypto and stablecoin payments were allowing users to avoid IOF on foreign-exchange operations. Brazil saw R$227 billion in crypto transfers in the first half of 2025, making the loophole increasingly significant.

A major turning point came when the central bank classified stablecoins as foreign-exchange instruments, creating a clear legal foundation for taxation.

Authorities are also preparing the new DeCripto monitoring system, aligned with OECD standards, which will expand data sharing with international partners and reduce tax evasion. The final tax rate has not been announced.

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