Brazil has announced a new tax to be implemented on cryptocurrency gains starting June 2025, affecting small traders significantly.
New Tax Policy in Brazil
According to Provisional Measure No. 1303, from June 12, 2025, all profits from cryptocurrency will be subject to a flat tax rate of 17.5%. This measure ends previous tax exemptions for small traders.
Impact on Small Traders
The removal of the previous monthly exemption of R$35,000 increases the tax burden on small traders. This may negatively impact their activity in the market, while larger players might benefit from a predictable taxation approach.
Market Adaptation to Changes
The change in tax policy may influence trader behavior and prompt market adjustments. Experts suggest that the increased tax burden on small traders could reduce liquidity, while larger traders could adapt to the new regime.
The introduction of the new cryptocurrency tax reflects Brazil's aim to enhance regulation and increase tax revenue from crypto assets.
