Cryptocurrency’s popularity in Brazil has already exceeded that of the major stock exchange B3 in Sao Paulo. The Ministry of Finance stated in a document dated October 30, 2018 that Brazilian users on cryptocurrency exchanges has passed the number of users of the major Brazilian stock exchange. The daily volume of five major Brazilian crypto exchanges now exceeds ~R$8.3MM or ~$2.2MM and the authorities have noticed.
The Department of Federal Revenue of Brazil (RFB) is now looking for monthly reports on all crypto asset operations detailing transaction amounts and user identity. While this seeks to claim the government’s share of capital gains, these new regulations support the mandate of the newly elected populist president Jair Bolsonaro, who campaigned on ending corruption. Fines of ~R$1500 or ~$400 will be imposed if the information is insufficient or false. Additionally, up to 3% of the transaction value and a fine could be applied in more serious cases.
Brazil now joins Australia and South Korea in reporting identities of cryptocurrency users to the federal government.