Crypto

Brazil's Congress moves towards imposing higher cryptocurrency taxes

Published

10 months ago

August 14, 2023

Brazil's Congress moves towards imposing higher cryptocurrency taxes

Brazilian legislators have been moving forward with laws that would increase taxes on cryptocurrencies held overseas.

As reported by local sources, amendments to a bill that identifies cryptocurrency as financial assets for tax purposes in overseas investments have been approved by a congressional committee. Moreover, the profits from the fluctuations in cryptocurrency asset prices against the country’s fiat currency are taxed by the draft bill, while also including foreign exchange rate oscillation. According to officials, the amendment seeks to equalise tax treatment, as Brazilian shareholders investing in Brazil pay more taxes than those who invest abroad. Foreign earnings up to USD 1,200 will be non-taxable under the new legislation, while earnings between USD 1,200 and USD 10,000 are subjected to a 15% tax rate, and the ones above this threshold undergo taxes of 22.5%.

As per the legislation, the adjustments are only applicable to cryptocurrency exchanges without offices in Brazil. Through the added regulations, local exchanges could be a less costly option for some investors, especially for those with earnings above the top tax bracket. Moreover, the law could increase cryptocurrency exchange activity at a national level, while also drawing foreign investors to establish offices in Brazil.

Some of the global cryptocurrency exchanges that operate in Brazil include Binance, Coinbase, Bitso, and Crypto.com, along with local participants such as Mercado Bitcoin and Foxbit.

The National Congress of Brazil will vote on the bill on 28 August and, if approved, it will take effect in January 2024.

Cryptocurrency regulations in Brazil

As per Statista’s report, the revenue in the cryptocurrency market is expected to increase at an annual growth rate of 16.25%, resulting in a forecasted total amount of USD 970 million by 2027. By the same period, the number of users is anticipated to reach 54 million, while the user penetration is expected to reach 24.6%, compared to 17.4% in 2023.

Considering the growth of the cryptocurrency market, Brazil’s officials have imposed several new regulations, including a decree from June 2023 which clarifies the roles of the country’s central bank and securities regulator in cryptocurrencies. The rules were established based on a law imposed in December 2022, which determines a crime of fraud involving virtual currencies, with a penalty of four to six years in jail plus a fine. A virtual service provider licence, which must be requested by digital asset companies, as well as exchanges and trading intermediaries, has also been included, as digital assets that are considered securities must be supervised by the Brazilian Securities and Exchange Commission.

Back in February 2022, Brazil legislators laid the basis to regulate the cryptocurrency market, passing a bill that provides guidelines for virtual assets. Through the implementation of cryptocurrency regulations, Brazil would also be part of other countries in the region setting procedures for overseeing the developing asset class.

Latin America has seen overall growth in the penetration of cryptocurrencies in recent years, mostly due to high inflation levels, political instability, and the lack of availability of traditional banking services.

Click to comment

Crypto

Trump says he is “very positive and [open-minded] to cryptocurrency companies,” advocates for US leadership in crypto industry

Published

5 hours ago

May 26, 2024

Press Room

Trump says he is “very positive and [open-minded] to cryptocurrency companies,” advocates for US leadership in crypto industry

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight – and oversight – of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Crypto

Whales Scoop Up 20,000 BTC In 24-Hour Buying Spree Amid Bitcoin Price Drop

Published

12 hours ago

May 25, 2024

Press Room

Whales Scoop Up 20,000 BTC In 24-Hour Buying Spree Amid Bitcoin Price Drop

ZyCrypto

Bitcoin (BTC) has continued its volatility trend, with recent fluctuations heightening the attention of seasoned investors on its next likely trajectory. Notably, the top crypto asset’s price has been consolidating its gains in the past few weeks, hovering around the $68,000 mark after reaching an all-time high above $73,000 in March.

Meanwhile, amidst the ongoing pullback, Bitcoin whales have embarked on a buying spree, acquiring a staggering 20,000 BTC in just 24 hours, according to insights shared by crypto analyst Ali Martinez.

The significant purchase, totaling approximately $1.34 billion at current market rates, occurred as Bitcoin prices dipped below the $67,000 mark. This sudden surge in whale activity suggests a renewed confidence in Bitcoin’s long-term potential despite short-term market fluctuations.

Martinez’s revelation comes just after crypto analytics firm IntoTheBlock revealed that addresses holding between 1,000 and 10,000 BTC have been the primary accumulators during Bitcoin’s recent surge to $70,000. On Thursday, the firm noted that these addresses added 20,000 BTC ($1.4 billion) to their balances over the past seven days, further solidifying Bitcoin’s position as a preferred asset among institutional and large-scale investors.

Other analysts have also closely monitored Bitcoin’s price movements and market dynamics. Glassnode, a leading on-chain data provider, highlighted a notable decline in Bitcoin Long-Term Holder (LTH) supply leading up to the cryptocurrency’s all-time high (ATH) of over $73,000 in March 2024. However, this distribution pressure has eased off in recent weeks, signaling a shift in market sentiment favoring bullish tendencies.

Adding to the bullish sentiment, cryptocurrency analyst “Gaah” from CryptoQuant highlighted the Puell Multiple, a metric used to gauge Bitcoin miner profitability following halving events. The recent decline in the Puell Multiple indicates a potential market adjustment to increased scarcity, potentially paving the way for a future rally in Bitcoin prices.

“The reduction in miners’ daily revenue indicates that mining has become less profitable, unless the price of Bitcoin increases significantly. The current range in which the Puell Multiple is quoted confirms Price discount, meaning that the network is potentially cheap. The decrease in the supply of new bitcoins could create upward pressure on the price, especially if demand continues to grow. Investors may interpret the fall in the Puell Multiple as a sign that the market is adjusting to a new phase of scarcity, potentially preparing for a rally.” The pundit noted.

Despite market uncertainties, Bitcoin appears to be encountering minimal resistance as it hovers around key support levels. Data from IntoTheBlock suggests that the cryptocurrency faces a crucial supply zone between $70,180 and $70,600, where over 450,000 addresses acquired 273,000 BTC. This accumulation by retail investors further reinforces the bullish outlook for Bitcoin in the near term.

According to CoinMarketCap data, BTC was trading at $69,173 at press time, reflecting a 2.72% price surge over the past 24 hours.

Crypto

Harnessing cryptocurrency to widen financial inclusion in Africa

Published

19 hours ago

May 25, 2024

Press Room

Harnessing cryptocurrency to widen financial inclusion in Africa

As we commemorate Africa Day, it’s crucial to reflect on the strides made toward economic empowerment and financial inclusion across the continent. Amidst the array of challenges, one notable phenomenon stands out: the rise of cryptocurrency.

Cryptocurrency adoption in Africa has sparked significant transformations. Across the continent, it is enabling individuals to access financial services previously out of reach for many. This technological advancement is narrowing the gap between the banked and the unbanked, offering a lifeline to millions excluded from traditional financial systems.

Think of a migrant worker sending money back home to his family overseas. In many countries, there are sizeable groups of people who cannot afford to sustain a bank account. At the same time, such people would struggle to meet the fees associated with conventional remittance services.

This challenge represents a vast segment of the global population. Globally, an estimated 1.4 billion people remain unbanked as of 2021, as per the most recent comprehensive estimate by the World Bank. This number is equal to roughly a quarter of the global adult population.

In light of these challenges, cryptocurrency is enabling individuals from all walks of life to access financial services previously out of reach for many from traditional financial systems.

At the forefront of this evolution are industry leaders like Binance, contributing to positive changes in Africa’s financial landscape. Through user-friendly platforms and educational initiatives such as Binance Academy and Binance Charity, they facilitate transactions and promote financial literacy and philanthropy. These efforts underscore the potential for crypto adoption to reshape financial norms.

The recent surge in Bitcoin prices further underscores the potential of cryptocurrencies to generate wealth and economic opportunities. Africa’s cryptocurrency landscape witnessed a remarkable surge in February 2024, echoing the global trend, with total market capitalisation soaring by 40 percent. In December 2023, the monthly change in crypto market capitalisation was 15.2 percent, but February 2024 witnessed a remarkable acceleration to 40 percent.

Beyond benefiting investors, this surge provides ordinary Africans with new avenues for prosperity. Whether through remittances, cross-border trade, or protection against inflation, crypto adoption offers a decentralised alternative that transcends borders and empowers individuals.

However, amidst the promise, challenges persist. Regulatory uncertainties and infrastructure deficiencies pose obstacles to widespread adoption. Collaboration among governments, regulators, and industry stakeholders is essential to cultivate an environment conducive to crypto innovation. Clear regulatory frameworks, investment in technological infrastructure, and education, are vital to unlocking the full potential of cryptocurrency adoption in Africa.

Looking ahead, Africa stands at a crossroads. The adoption of crypto presents a unique opportunity to redefine the continent’s financial landscape, fostering inclusivity and economic empowerment for all. With visionary leadership, strategic partnerships, and a commitment to innovation, Africa can lead the world in harnessing the transformative power of cryptocurrency.

On this Africa Day, let us celebrate the progress made and recommit ourselves to building a more prosperous and inclusive future for all Africans, driven by the transformative potential of crypto adoption, one step at a time.

Binance, the largest cryptocurrency exchange by trading volume, serving 190 million users across 100 countries, is taking pizza to the moon for Bitcoin Pizza Day. Over six days, Binance will be distributing more than 5,000 pizzas globally to reach consumers worldwide for Bitcoin Pizza Day. Binance is taking steps to truly own the holiday on a global scale, delivering on its mission to educate and engage with both crypto and non-crypto users.

Hannes Wessels is the Country Head for Binance in South Africa