According to the report in June 2019, the Department of Federal Revenue of Brazil (RFB) set new rules in which the exchanges of cryptocurrency will inform the regulator about the user’s transactions to check tax fraud.
In Brazil, the guidelines are clarified to the trading platforms of cryptocurrency. They should report the movements of the funds by the user to the agency. It is required that all the exchange operators must inform about all the transactions that are carried out within the system. All the platforms that are abroad-based must also provide the information whenever the value of the operation either alone or jointly exceeds 30,000.00 Brazilian reals in the month.
Keeping an eye on transactions is a must, but it is also important that the exchange operators must provide the data like the nationality of the holder of digital currency, address, registration number and all the crypto assets that are used in the transactions.
RFB announced that they were forming the basic requirements for the cryptocurrency exchanges. The legal director of the Bitcoin banco Group, Ismair Junior Couto who is the largest cryptocurrency broker of Brazil said that the initiate was expected for a long time. He continued that there are provisions made by Bitcoin Banco to provide the needful information to authorities.
On May 31, 2019, it was reported that Brazil’s President of Chamber of Deputies arranged a commission to be developed to deal with the regulations of cryptocurrency in Brazil. The commission will function with the local regulating activities around digital assets like Bitcoin. It is expected to have a commission of 34 members according to the House Rules of Procedure.
The president of Brazil, Jair Bolsonaro, has publicly opposed Bitcoin. He said that he does not have any idea about Bitcoin. He thinks it is just a type of coin. Then, the leader commented that in the Latin blockchain sphere of America, Brazil is one of the active countries and they are generating the highest turnover in all the parts of the region.