Brazil’s 17.5% Crypto Tax Threshold Removed Sparking Debate as October Deadline Nears
Brazilian lawmakers are preparing to debate a contentious cryptocurrency tax proposal under President Luiz Inácio Lula da Silva’s administration, a move that has drawn sharp criticism from industry stakeholders. The provisional measure, introduced in June, removes exemptions for small-scale crypto traders and imposes a uniform 17.5% tax on all transactions, eliminating the prior threshold of 35,000 reais ($6,320) that allowed smaller investors to avoid levies [1]. The policy must be ratified by October 8 to remain in effect, with a congressional hearing scheduled for August 6. Critics argue the flat tax could suppress innovation, push retail investors toward unregulated markets, and undermine Brazil’s nascent digital economy….
