Home>EXCHANGES>Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Acesso Bitcoin and Latoex Out of Business
EXCHANGES

Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Acesso Bitcoin and Latoex Out of Business



Tax regulations implemented even before dedicated legislation has been adopted have hit Brazilian cryptocurrency exchanges. Digital asset brokers failing to comply with the new reporting requirements face fines and the stricter rules are hurting smaller platforms, which are shutting down due to dwindling trading volumes.

Also read: Tax Agents ‘Confiscate’ Bitcoin From Criminal but Keep the Coins in His Wallet

Exchanges Struggle With Compliance Costs and Diminishing Returns

One of the affected exchanges, Acesso Bitcoin, points to the current situation created by the new regulations as the main reason for its decision to quit. “After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume,” said cofounder Pedro Nunes, quoted by the crypto news outlet Portal do Bitcoin. “We also feel that the market has cooled off for smaller exchanges,” he added.

Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Acesso Bitcoin and Latoex Out of Business

Porto Alegre-headquartered Acesso Bitcoin recently advised clients on how to proceed with withdrawing their funds. Anyone who keeps bitcoin core (BTC) with the exchange should transfer the coins to a private wallet or another exchange. Customers who have balances in Brazilian real (BRL) can withdraw the money at any time in accordance with the terms and conditions that were applicable when the platform operated normally.

Latoex, formerly known as the São Paulo-based platform E-juno, is another cryptocurrency exchange that’s shutting down due to difficulties meeting the tax authority’s new requirements. Last week, the closure was confirmed by Diego Velasques, chief executive officer of Latoex Capital, the investment arm of the exchange which separated from the crypto trading platform in December.

Latoex (Latin America Token Exchange) is now looking to sell its assets to other companies and return remaining funds to its clients. The asset manager is also trying to reverse a suspension order issued by CVM, Brazil’s Securities and Exchange Commission, which threatened to impose a 100,000 Brazilian rial ($23,000) fine in case the group does not comply with its decision.

Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Acesso Bitcoin and Latoex Out of Business

Brazil is yet to adopt legislation tailored to regulate the crypto space. In the absence of a dedicated law, interactions in the industry are now largely governed by Normative Instruction 1888 issued by Secretaria da Receita Federal do Brasil (RFB), the Department of Federal Revenue. The substatutory act was published in May and entered into force on Aug. 1, 2019.

According to the instruction, all transactions carried out through Brazilian crypto exchanges must be reported to the RFB, regardless of the amount traded. Noncompliant brokers and companies that present inaccurate information will be fined. Failure to file a monthly declaration would cost them between 500 and 1,500 rial ($350) per violation. But even without fines, compliance requires additional investments as the whole sector is trying to adapt to the new regulations.

Three Crypto Bills Stuck in the National Congress

Multiple proposals to comprehensively regulate the crypto industry and place it under the oversight of the Central Bank of Brazil have been filed in both houses of the country’s National Congress. The main draft so far, Bill 2303/2015 which was introduced to the Chamber of Deputies almost five years ago, was archived in 2018 and later placed back on the agenda in March 2019. A special commission has been appointed to analyze it and make revisions, if necessary.

Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Acesso Bitcoin and Latoex Out of Business
National Congress of Brazil

Two other bills, PL 3825/2019 and PL 3949/2019, are currently under review in the Senate. Both aim to establish general rules for the cryptocurrency market with particular focus on implementing regulations for digital asset brokers and investor protection measures. No specific time frame has been set for the enactment of either of these pieces of legislation which are still subject to deliberation.

The new challenges for crypto companies in Brazil mirror some regulatory developments European businesses have to deal with. Stricter due diligence requirements were introduced in the EU with the bloc’s Fifth Anti-Money Laundering Directive (AMLD5) that member-states had to transpose into national law by Jan. 10, 2020. Several crypto startups have already closed down or relocated to other jurisdictions in order to preserve their business models and keep their customer base. The European Commission is still working on a comprehensive proposal to regulate crypto-related activities in the union.

What are your expectations about the future of crypto businesses in Brazil? Share your thoughts on the subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock, Acesso Bitcoin.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Acesso Bitcoin and Latoex Out of Business appeared first on Bitcoin News.

 

source: https://news.bitcoin.com/tax-rules-hit-brazilian-crypto-exchanges/

TheBitcoinNews.com is here for you 24/7 to keep you informed on everything crypto. Like what we do? Tip us some BAT

Send Tip now!

Post source: Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Acesso Bitcoin and Latoex Out of Business

More Bitcoin News and Cryptocurrency News on TheBitcoinNews.com



  • Bitcoin
  • Ethereum
  • Bitcoin cash
  • Litecoin
  • Cardano
  • Dash
  • Stellar
  • Ethereum classic
  • Lisk
  • Tron
  • Neo
  • Qtum
  • Omisego
  • Binance coin
  • Zcash
Scan to Donate Bitcoin to 1J6PGL1oemFb3hxabLygq4WgWx8cbfji1r

Please help us if you can with some Bitcoin

Scan the QR code or copy the address below into your wallet to send some Bitcoin

Scan to Donate Ethereum to 0xA8E701dd11280a98e8F2e0A14064AC829E32D50F

Please help us if you can with some Ethereum

Scan the QR code or copy the address below into your wallet to send some Ethereum

Scan to Donate Bitcoin cash to qrth4e0g93h3gpxex8ycwuxtsa332tha5qvkmlz0g5

Please help us if you can with some Bitcoin cash

Scan the QR code or copy the address below into your wallet to send some Bitcoin cash

Scan to Donate Litecoin to LTxxjySMDtERJhHYJ99UFW9AamAWTwCAZ4

Please help us if you can with some Litecoin

Scan the QR code or copy the address below into your wallet to send some Litecoin

Scan to Donate Cardano to DdzFFzCqrhsopoZLhbouUwh2NvvWMPeFrXQW9vNNpPKrjKbRGyLRN5joJgCeZ6e1MRHtPHeLffpkNpQs5AdDA8qFCZ4gA9bYtaerNQTk

Please help us if you can with some Cardano

Scan the QR code or copy the address below into your wallet to send some Cardano

Scan to Donate Dash to XmAdEHrwiVZJVkAxe8hK5U6HZB59L5yhmK

Please help us if you can with some Dash

Scan the QR code or copy the address below into your wallet to send some Dash

Scan to Donate Stellar to GD4KROE42HPOMT7BT6M27HHLFCOSIXPYY2V3WSCX5FYEWRJDIJQ4RWFT

Please help us if you can with some Stellar

Scan the QR code or copy the address below into your wallet to send some Stellar

Scan to Donate Ethereum classic to 0x5BF3fCAC8deA20CF21C9D0D9d058E00EEfc431Ae

Please help us if you can with some Ethereum classic

Scan the QR code or copy the address below into your wallet to send some Ethereum classic

Scan to Donate Lisk to 15642042552518336132L

Please help us if you can with some Lisk

Scan the QR code or copy the address below into your wallet to send some Lisk

Scan to Donate Tron to TYnAenRiV6BsTiE6FVyAcDDxZtBKUQTFxN

Please help us if you can with some Tron

Scan the QR code or copy the address below into your wallet to send some Tron

Scan to Donate Neo to ATiXRHVqYqrNktbxJfcDETfnrSUWSG4cPb

Please help us if you can with some Neo

Scan the QR code or copy the address below into your wallet to send some Neo

Scan to Donate Qtum to QUYXxY6kX7TY2HSLwVYMwFaJNZLwvX5uyp

Please help us if you can with some Qtum

Scan the QR code or copy the address below into your wallet to send some Qtum

Scan to Donate Omisego to 0xA8E701dd11280a98e8F2e0A14064AC829E32D50F

Please help us if you can with some Omisego

Scan the QR code or copy the address below into your wallet to send some Omisego

Scan to Donate Binance coin to 0xA8E701dd11280a98e8F2e0A14064AC829E32D50F

Please help us if you can with some Binance coin

Scan the QR code or copy the address below into your wallet to send some Binance coin

Scan to Donate Zcash to t1cBCyKgSSqWaNrkpvQZUSTuxMmAbbAyFpZ

Please help us if you can with some Zcash

Scan the QR code or copy the address below into your wallet to send some Zcash



Source link

Review Overview

Summary