Coinbase Urges Brazil’s Next Government to Reject IOF on Stablecoins
About 29 million Brazilians hold or have held crypto assets, while regulators consider classifying stablecoins as electronic money or foreign currency.
Coinbase is urging Brazil’s next government to keep stablecoins under existing crypto rules and reject IOF taxation as regulators weigh reclassifying them as electronic money or foreign currency.
About 29 million Brazilians hold or have held crypto assets, representing roughly one-sixth of the country’s adult population and nearly three times the number of stock-market investors.
Brazil is scheduled to hold elections in October. The next government could face a policy decision over whether stablecoins remain virtual assets under the country’s current crypto laws.
The proposed reclassification could make crypto transactions subject to the Tax on Financial Operations, known as IOF. Coinbase is arguing that stablecoins should continue to be treated as virtual assets and remain within Brazil’s existing crypto-asset framework.
