Brazil’s finance minister delays divisive crypto tax plan

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Brazil’s finance minister delays divisive crypto tax plan The proposed tax would classify some crypto transactions as foreign exchange operations, subject to rates ranging to as high as 3.5%. By Francisco Rodrigues | Edited by Sheldon Reback Mar 23, 2026, 11:55 a.m. Make us preferred on Google (Rafaela Biazi/Unsplash) What to know : Brazil's finance minister delayed a consultation on taxing certain crypto transactions, citing concerns about triggering conflict with Congress during an election year. The proposed tax would classify some crypto transactions as foreign exchange operations, subject to rates as high as 3.5% that industry groups argue are illegal and unfair. The postponement comes amid pushback from industry groups, who say stablecoins shouldn't be treated as foreign exchange instruments, and may be followed by shelving another proposal to end tax breaks on investment securities. Brazil’s new finance minister, Dario Durigan, is expected to delay a public consultation on applying a tax on financial operations, locally known as Imposto sobre Operações Financeiras (IOF) to some cryptocurrency transactions, Reuters reported , citing sources familiar with the matter. Durigan took office on March 20 after Fernando Haddad stepped down to run for governor of São Paulo. Reuters said the new minister wants to focus on microeconomic measures and avoid proposals that could trigger conflict with Congress during an election year. The postponed consultation centered on a draft decree that could classify some crypto transactions as foreign exchange operations. That matters because foreign exchange deals in Brazil can face IOF rates ranging from 0.38% on some inbound flows to as much as 3.5% on overseas purchases, remittances and card spending abroad. Transfers for overseas investment can face a 1.1% rate. The proposal has already drawn pushback from major industry groups. In a joint statement ABcripto, ABFintechs, Abracam, ABToken and Zetta, which together represent more than 850 companies , said applying IOF to stablecoin transactions would be illegal under Brazil’s constitution and the country’s 2022 Virtual Assets Law. They argued that stablecoins are not fiat currency and cannot be treated as foreign exchange instruments by decree or administrative rule. The proposal drew attention in February after the central bank classified part of the crypto market, especially some stablecoin activity, within the scope of foreign exchange rules. That gave the Finance Ministry and tax authorities a base to study whether those transactions should fall under IOF. The ministry may also shelve a separate proposal to end tax breaks on some investment securities. Cryptocurrency Stablecoins More For You Prosecutors flag mail discrepancies in Sam Bankman-Fried’s retrial motion letter from prison By Sam Reynolds | Edited by Omkar Godbole 3 hours ago A letter attributed to the jailed FTX founder was shipped via FedEx and misidentified his prison, prompting prosecutors to question its authenticity What to know : Federal prosecutors told a judge that a letter purportedly sent from prison by Sam Bankman-Fried was actually shipped via FedEx from the Palo Alto or Menlo Park area, suggesting it came from someone outside. The government cited discrepancies including use of a private carrier barred to inmates, mislabeling of Bankman-Fried's federal prison as a state facility and a typed signature, saying these give reason to doubt he authored the letter. While prosecutors did not accuse Bankman-Fried or his associates of fabricating the document, the filing underscores their effort to challenge evidence he is using to seek a new trial over his FTX fraud conviction. Read full story Latest Crypto News Bitcoin surges above $71,000 as Trump postpones Iran strikes for 5 days 31 minutes ago Polymarket traders bet on Iran ceasefire even as oil shock concerns persist 39 minutes ago Bitcoin retreats to $68,000, leaving CME gap as traders eye $70,000 rebound 1 hour ago Bitcoin clings to monthly gains, historic losing streak still in play 1 hour ago Bitcoin's momentum indicator is flashing a signal that should worry bulls 1 hour ago Fed's Miran speaks, Bitgo earnings, Casper hard fork: Crypto Week Ahead 2 hours ago Top Stories South Korea crypto liquidity tumbles as stablecoin balances plunge 55% and stock buying rises 7 hours ago Stocks start catching up with bitcoin’s earlier price crash to $60,000 as bond yields rise 6 hours ago Oil, silver trading is way more popular than XRP, solana on Hyperliquid 5 hours ago Bitcoin miners are losing $19,000 on every BTC produced as difficulty drops 7.8% Mar 22, 2026 Ethereum faces make-or-break moment in high-stakes balancing act as scaling, quantum and AI pressures mount 18 hours ago