🔥 Crypto Boom in Brazil?
posted 29 Oct 2024
Since the start of 2024, Brazil’s net crypto inflow has surged almost 61%, according to Reuters, illustrating the country’s growing demand for digital assets.
Data from Brazil’s Central Bank shows that from January to September 2024, the net import of crypto assets into Brazil increased by 60.7% compared to the same period in 2023, reaching $12.9 billion.
This already surpasses the total volume for all of 2023 ($11.7 billion).
The rising influx of cryptocurrencies into Brazil over the first three quarters of this year highlights the increasing significance of digital assets in the country. This widespread adoption has placed Brazil tenth in the 2024 Global Crypto Adoption Index Top 20 by Chainalysis.
Brazil Ranks 10th in Global Crypto Adoption. Source: Сhainalysis
The key driver of Brazil’s crypto boom is the sharp rise in stablecoin usage. According to local tax authorities, USD stablecoins account for nearly 70% of all crypto transactions in the country this year.
It’s worth noting that Brazilians are required to declare their virtual assets in the “Property and Rights” section of their income declarations and pay a 15% tax on earnings over $7,265 per month.
Crypto exchanges and sales are subject to taxes, while miners are only taxed when selling mined cryptocurrency.
Related: Crypto Regulation in Brazil
Brazil’s Central Bank President Roberto Campos Neto has announced plans to regulate stablecoins by 2025, linking their popularity to tax evasion and potential illegal activities.
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