The Federal Revenue Service is reviewing the regulation on crypto assets through a public consultation that ended in December. The process seeks to modernize Normative Instruction RFB No. 1,888/2019, with the implementation of a new instrument.
DeCripto will have adjusted rules after contributions
The Crypto Assets Declaration (DeCripto) should make the obligation to declare crypto transactions in Brazil clearer and more accessible. This will be an obligation that will require detailed information on transactions involving crypto assets, including purchase, sale, transfer and custody.
This new declaration aims to increase transparency, combat tax evasion and allow for better control over movements in this market. The 24 participants in the public consultation, including companies from the sector and experts, will adjust the new standard based on their contributions.
This update is part of the 2024 inspection plan, which also includes monitoring foreign exchanges operating in Brazil. The IRS has already held meetings with market representatives, such as the “Cripto Conforme” event, to discuss the needs and advances in regulation.
Revenue wants to apply coercive measures
With DeCripto, the Federal Revenue's strategy will be to divide the process into stages: first, to encourage self-regulation, allowing taxpayers to adjust their declarations. Secondly, coercive measures will be applied to those who fail to comply with the rule.
Declaring crypto assets in Brazil is not just a recommendation, but a legal obligation. Failure to comply may result in fines and other sanctions. The initiative seeks to balance crypto market innovation with efficient regulation, ensuring a safer and more transparent environment for all involved.
IRS rules for declaring crypto assets include reporting own custody
According to Normative Instruction 2180, published in the Official Gazette in March of this year, digital assets in cold wallets may be classified as being held “abroad”.
Income of individuals resident in the country with financial investments abroad. As well as profits and dividends of entities controlled abroad will also be taxed.
The article Federal Revenue will update crypto regulations by the end of March 2025 was first seen on BeInCrypto Brasil.