The Central Bank of Brazil (BCB) is about to launch a public consultation focused on the stablecoin market. The idea is to regulate operations with this type of cryptocurrency and evaluate the possibility of applying the Tax on Financial Transactions (IOF).
In fact, the expectation is that the BC will publish the consultation in November, as revealed by Pedro Henrique Nascimento. He is the coordinator of the BC's Financial System Regulation Department and revealed the information during an event promoted by Mercado Bitcoin this Tuesday (26).
Thus, the proposal is to classify transactions with stablecoins as exchange operations, which would imply the charging of IOF. The tax rates vary according to the type of operation, and, if implemented in the stablecoin market, could follow the current rules for credit operations, international purchases and exchange.
IOF rates for different transactions
Credit Operations:
Individuals: 0.0082% per day (equivalent to 3% per year) + 0.38% fixed on the value of the transaction.
Legal entities: 0.0041% per day (equivalent to 1.5% per year) + 0.38% fixed.
International Purchases (with credit or debit card):
From January 2024, rate of 4.38%, with gradual reduction until 2028.
Exchange Operations:
Purchase of foreign currency in cash: 1.1%.
International transfers: 1.1% (same ownership) and 0.38% (to third parties).
Investment Redemptions:
Regressive IOF on fixed income securities income, starting at 96% on the first day and reducing to 0% on the 30th day.
Regulation of exchanges and stablecoins
The Central Bank is also considering creating rules to regulate how cryptocurrency exchanges (VASPs) operate with stablecoins. The monetary authority is also keeping an eye on the regulation implemented in Europe with MiCa (Cryptoasset Market). These rules will define, for example, how stablecoins should be treated, including the management of unregulated stablecoins.
Although the Central Bank does not yet have details on how transactions with stablecoins will be handled, the BC coordinator highlighted that the particularities of the market will be considered, especially in relation to the use of assets for exchanges of other digital assets.
Furthermore, Pedro Henrique Nascimento mentioned the creation of a specific sector in the Central Bank to monitor exchanges. This is mainly to ensure that all companies comply with the new rules to be established, promoting a safer and more regulated crypto market in Brazil.
The launch of the public consultation is an important step towards understanding how the Central Bank intends to deal, above all, with the growing use of stablecoins in the country and the impacts of a possible IOF charge for these operations.
The article BC may tax stablecoins; public consultation will be opened was seen for the first time on BeInCrypto Brasil.
