Record number of women declare crypto holdings to Brazil’s taxman
Over 1.3 million Brazilian citizens declared crypto assets in their tax returns, and a record number of them are women.
In 2019, the Internal Revenue Service issued a requirement that all traders submit information on trades made in cryptocurrencies, regardless of the platforms on which they were made. Traders are also required to pay tax on profitable trades.
Since then, the number of women filing tax returns – and consequently conducting crypto trades – has increased by about 4%, and now accounts for nearly 20% of all transactions.
The most popular cryptocurrencies appearing on tax returns are Tether (USDT), Bitcoin (BTC), USD Coin (USDC) and Ethereum (ETH), with Tether having the largest volume of transactions – around $1.4 billion (7.8 billion in Brazilian reals) and Bitcoin comes in second with approximately $332 million (1.74 billion in Brazilian reals).
The top 10 cryptocurrencies on the list also include XRP, Cardano (ADA) and Solana (SOL).
Latin America is a promising market for the crypto industry, with many countries on the continent stepping up their crypto efforts.
Brazil is one of the largest regions in Latin America. In 2021, the country saw $4.27 billion in cryptocurrency purchases and over $90 billion in total transactions.
And that’s one reason why Brazilian authorities are looking at ways to regulate cryptocurrency in order to manage it better.
In April, the Federal Senate of Brazil passed a bill introducing “virtual service providers” in an attempt to regulate crypto transactions in the country. The bill describes a digital asset as a digital representation of value that is tradable and transferable and can be used for payment and investment.
Irajá Abreu, the bill’s speaker, called this an “extremely important and urgent matter” at the time.
The Brazilian Securities and Exchange Commission (SEC) is reportedly considering amending the current legal framework to address the issue of digital assets, as well as non-fungible tokens (NFTs), which are not treated as securities in the bill passed in April, making it thus does not fall under SEC jurisdiction.
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