In bids to prevent tax evasion and money laundering, Brazil’s Department of Federal Revenue (RFB) has made it known that it will be taking steps to monitor the activities of enterprises that has anything to do with Cryptocurrency and blockchain technology in general.

Department of Federal Revenue (RFB)

Based on a recent report the RFB made it known that all Brazil-based cryptocurrency exchanges are required to submit detailed monthly reports on all of their cryptocurrency-related operations. The report made it clear that this is not only limited to businesses. Individuals operating in the industry are also required to report any crypto related transaction that is above 10,000 Brazilian Reals ($2,700). The agency also made it known that all report should be made through it’s virtual service centre (e-CAC).

The RFB has also made it clear that anyone caught not abiding by its rules and guidelines will be prosecuted accordingly

Swift Response is Needed

The RFB’s report also made it known that the number of crypto users in the country has increased significantly compared to that of last year. The RFB stated that:

“in December of last year, Brazil saw over 4 billion reals ($1 billion) used to buy and sell cryptocurrencies like bitcoin. This year, given the crypto industry’s growth in the country, an annual trading volume between 18 and 45 billion reals is expected ($4.8 to $12.1 billion”

The RFB added:

“In Brazil, there has been a significant increase in the cryptoasset market in recent years, which demonstrates the relevance of the cryptoasset market in the country, mainly for the tax administration, since transactions are subject to income tax on the capital gains eventually earned.”

With the number of cryptocurrency exchanges on the rise in the country, and based on numerous report of people using cryptos to evade task. The agency believes that it has to step in now before the situation gets beyond its control.