As Stablecoins Boom, Brazil Considers a New Tax on Crypto Transfers

Brazil is considering applying its financial transaction tax to international payments made with cryptocurrencies, Reuters reported Nov. 18, citing two officials with direct knowledge of the discussions. The move would close a gap in the country’s standard levy on foreign-exchange operations.

One of the officials said the Finance Ministry is examining whether to expand the IOF tax to certain cross-border transfers involving virtual assets and stablecoins. Earlier this month, Brazil’s central bank classified those types of transactions as foreign-exchange operations. The Finance Ministry declined to comment.

Crypto transactions are not currently subject to the IOF. Investors instead pay income tax on capital gains above a monthly exemption.

According to the sources, the proposal is intended to close a regulatory loophole. Any change could also increase public revenue at a time when Brazil is working to meet fiscal targets.

Brazil’s crypto market has grown rapidly, driven by heavy use of stablecoins backed by assets such as the U.S. dollar. Federal tax authority data show crypto transactions reached 227 billion reais in the first half of 2025, up 20 percent from a year earlier. Roughly two-thirds of that activity involved USDT, while bitcoin represented about 11 percent.