Over 1.3 million Brazilian citizens declared crypto assets in their tax reports, and a record number of them are women.
In 2019, the Internal Revenue Service issued a requirement that all traders should submit information regarding trades made in cryptocurrencies, regardless of the platforms on which they were executed. Traders are also required to pay taxes on profitable trades.
Since then, the number of women declaring tax reports – and, consequently, performing crypto trades – has increased by approximately 4%, and now amounts to almost 20% of all transactions.
The most popular cryptocurrencies appearing on tax declarations are Tether (USDT), Bitcoin (BTC), USD Coin (USDC), and Ethereum (ETH), with Tether holding the biggest volume of transactions – around $1.4 billion (7.8 billion in Brazilian reals) and Bitcoin coming second with approximately $332 million (1.74 billion in Brazilian reals).
The top 10 cryptocurrencies on the list also include XRP, Cardano (ADA), and Solana (SOL).
Latin America is a promising market for the crypto industry, with many countries on the continent stepping up their crypto efforts.
Brazil is one of the biggest regions in Latin America. In 2021, the country saw $4.27 billion made in purchases with cryptocurrency and over $90 billion in overall transactions.
And that is one reason why Brazilian authorities are looking into ways to regulate cryptocurrency in order to manage it better.
In April, the Federal Senate of Brazil passed a bill introducing “virtual service providers” in an attempt to regulate crypto transactions in the country. The bill describes a digital asset as a digital representation of value that is tradable and transferable and can be used for payment and investment.
Irajá Abreu, the bill’s rapporteur, called this an “extremely important and urgent matter” at the time.
The Brazilian Securities and Exchange Commission (SEC) is reportedly considering amending the current legal framework to address the issue of digital assets, as well as non-fungible tokens (NFTs), not being treated as securities in the bill passed in April and thus do not fall under the SEC jurisdiction.