Brazil’s Cryptocurrency Exchange Associations ABCripto (Brazilian Association of Cryptoeconomics) and Brazilians Association for Cryptocurrencies and Blockchain (ABCB) have forwarded proposals to the Federal Revenue Service of Brazil (RFB) for public consultation.
The move comes after the RFB enacted several new moves to account for monthly cryptocurrency transactions by exchanges and demanded control of these assets to avoid tax evasion in these platforms.
The purpose behind Brazil’s top regulator’s latest moves is to allow cross information of income tax of individuals and businesses operating in the cryptocurrency sector. RFB wants to have a concerted insight into the whole process and calculate the capital gains of the investors and traders through their buy and sell orders.
According to the Yurie Lira, the exchange association’s focal person, “The entire community has been struggling to understand the demand for Revenue and to position itself in a unified way. We seek to consolidate a single drafting model of the normative act to be presented to RFB.”
One of the most contentious decisions both ABCB and ABCripto are looking to overturn include Article 5 of the new rules that suggest all transactions more than BRL 10,000 (USD 2,620)be reported to the RFB. The exchange associations are looking to have it raised to BRL 35,000 which is in line with the article 170 and 179 of the Brazilian constitution.
According to the proposals: “In addition to the quest for equal treatment of the cryptocurrency sector we also took care to provide clarification regarding the condition of the cryptocurrency market…”
Other changes desired by the exchange unions can be read in detail in the new proposal. The proposals may be necessary to save the Bitcoin market in the country according to a joint statement by these two associations.
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