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Brazil News

The Federative Republic of Brazil is a country in South America with a population of approximately 216 million, covering the largest land area in both Latin America and South America. Economically, Brazil ranked as the 12th largest economy globally, with a gross domestic product (GDP) of 1.6 trillion. However, it has a low GDP per capita and ranks poorly in human development and crime, with one of the highest levels of homicide and violence. 

In November 2022, Brazil’s Chamber of Deputies approved a regulatory framework legalizing cryptocurrency usage for payments. President Jair Bolsonaro signed the crypto bill 14.478 into law in December 2022, establishing crypto as a payment method and introducing licensing requirements for virtual asset service providers (VASPs). On June 14, 2023, President Luiz Inácio Lula da Silva signed government decree No. 11.563, outlining rules under the December 2022 law, empowering the Central Bank of Brazil to regulate and supervise VASPs. Additionally, token projects qualifying as securities remained under the oversight of Brazil’s equivalent of the SEC, the Comissão de Valores Mobiliários.

In Brazil, individuals are taxed on capital gains up to 5 million reais at 15%, increasing progressively to 22.5% for higher gains. Brazilian legal entities are taxed on crypto gains as regular income, following the chosen corporate tax system.