Several Brazilian associations have jointly opposed imposing a financial transaction tax on stablecoin transactions.

PANews reported on March 15th that, according to CoinDesk, the Brazilian crypto and fintech industry associations ABcripto, ABFintechs, Abracam, ABToken, and Zetta issued a joint statement opposing the expansion of the Financial Transaction Tax (IOF) to stablecoin transactions. These associations represent over 850 companies in Brazil.

These associations argue that including stablecoin transactions in the tax system would conflict with Brazil's current legal framework and harm the country's crypto industry. They believe the move could violate the Brazilian Constitution and the Virtual Assets Law passed in 2022. According to an auditor from the Brazilian Federal Tax Service, the monthly trading volume in Brazil's crypto market is approximately $6 billion to $8 billion, of which about 90% is stablecoin transactions.