Brazil’s tax regulator, the Department of Federal Revenue, is requiring local cryptocurrency exchanges to report their operations on a monthly basis in order to verify tax compliance and improve the country’s fight against money laundering and corruption.
Brazillian Cryptocurrency Exchanges to Report Monthly Trading Data to Authorities
Citing the examples of Australia and South Korea, the Brazillian authorities announced they will require monthly reports from local digital currency exchanges from now on.
The document points to a significant increase of cryptocurrency trading in Brazil. In 2017, the number of user accounts on crypto operators surpassed the number of user accounts registered on the Sao Paulo stock exchange.
Annual Bitcoin trading volume has jumped from 44.8 million BRL ($12.12 million at current rates) in 2014, to 113 million BRL ($30.57 million) in 2015. Volumes only got larger in 2016 (363.2 million BRL or $98 million at current rates) and 2017 (8.3 billion BRL, which is $2.25 billion at current rates).
It is important to note that the value of the country’s currency has fallen by approximately half throughout that period and the value of Bitcoin reached its all-time high in late December 2017, around the $20,000 area.