Why Has Brazil Paused Its Crypto Tax Plans?

Brazil’s incoming Finance Minister Dario Durigan has put a planned public consultation on crypto taxation on hold, according to a Reuters report citing two sources familiar with the matter. The consultation was expected to clarify how crypto transactions should be taxed after the central bank classified certain crypto flows as foreign exchange operations.

Durigan, who took office after Fernando Haddad stepped down to run for governor of Sao Paulo, is prioritizing microeconomic legislation while avoiding politically sensitive fiscal measures ahead of Brazil’s October presidential election. The sources said the government does not want to spend political capital in Congress on tax changes…