Brazil Plans 3.5% Tax on Stablecoin Purchases and Remittances
Brazil’s Revenue Service said last week it will put forward a proposal for public consultation to classify stablecoin purchases and remittances as foreign currency exchange operations subject to the Financial Transactions Tax (IOF), imposing a 3.5% levy on both buys and transfers. The move would align stablecoins with existing currency exchange rules rather than treating them as exempt crypto assets, representing a significant shift in how digital cash-like tokens are taxed. If adopted, the tax could increase the cost of remittances, peer-to-peer trades and fiat on/off-ramps, prompting exchanges and payment providers to pass fees to customers or redesign products. The consultation leaves timing and enforcement unclear, but the proposal signals tighter scrutiny of crypto flows in Brazil and could influence adoption, remittance corridors and fintech strategy as stakeholders prepare responses during the public comment period.