Post By: CryptosHeadlines.com
In the world of cryptocurrency transactions, Brazil is currently experiencing the overwhelming dominance of USDT, with this stablecoin accounting for a staggering 80% of the entire market share.
USDT, a popular cryptocurrency, has gained a lot of popularity in Brazil, making up 80% of all cryptocurrency transactions in 2023. In mid-October, the total value of USDT transactions in Brazil hit 271 billion Brazilian Reals (about 55 billion USD), almost double the value of Bitcoin transactions, which reached 151 billion Brazilian Reals (around 30 billion USD).
USDT started becoming more popular in Brazil in 2021 and overtook Bitcoin in July 2022, during the cryptocurrency industry’s peak. This peak was marked by the collapse of Three Arrows Capital and Voyager Capital.
In 2022, the number of cryptocurrency transactions in Brazil dropped by almost 25% due to a “crypto winter,” ending at 154.4 billion Brazilian Reals (about 31 billion USD).
The Brazilian tax authority keeps a close eye on cryptocurrency activities using artificial intelligence and network analysis to detect suspicious behavior and track transaction participants. Cryptocurrency exchanges in Brazil have been required to report all transaction information to the government since 2019. Profits from selling cryptocurrency exceeding 7,000 USD per month are subject to taxes ranging from 15% to 22.5%.
The tax authority is also interested in Brazilian citizens’ cryptocurrency investments abroad. Income above 10,000 USD is subject to a 15% tax, and higher amounts are taxed at 22.5%. This new tax law was approved in September and will be effective from January 2024.
Several exchanges, including Coinbase, Binance, Bitso, and Crypto.com, operate in Brazil, alongside local companies like Mercado Bitcoin and Foxbit.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
