Brazil Faces Crypto’s Breaking Point With Generalization of Crypto Income Tax
The cryptocurrency industry in Brazil is approaching a potential turning point in its history, and it is mobilizing all its lobbying power to avoid it. The cause is Provisional Measure 1,303/2025, which changes the established cryptocurrency taxation scheme and extends it to all crypto holders.
The new provisional measure, currently in effect but pending passage in Congress to extend its validity, generalizes cryptocurrency income taxation for all crypto holders, imposing a 17.5% levy. This substitutes the previous scheme, which applied a staggered rate starting at 15% for figures over 35,000 reais (nearly $6,500), with exemptions applying to lower amounts.
Julia Rosin, head of public policy at Bitso, stated that the industry is determined to maintain this exemption, as its abolition would change the landscape of crypto adoption in the country. “This is important to ensure the sustainability of the national market,” she assessed.
Rosin indicated that the implementation of this new taxation regime would affect 90% of all cryptocurrency users in the country, potentially putting national exchanges at a disadvantage against foreign exchanges that don’t offer basic security features, or in the decentralized world.
Guilherme Sacamone, CEO of Okex, stated that nearly 60% of all crypto in Brazil is already being transacted outside the country. “Do we want to bring this to the country or do we want to leave it abroad?” he stressed.
Valor Economico highlights that the efforts of the Brazilian crypto industry will be focused on this specific point, as the decree is unlikely to be rejected because its contents also change several determinations regarding a financial transaction tax.
Congress is also slated to discuss the creation of a strategic bitcoin reserve this week, with the potential of turning Brazil into a cryptocurrency pioneer in Latam.
