Stablecoins Drive 90% of Brazil’s Crypto Volume, Tax Authority Data Shows

Core Insights - Brazil's crypto market is experiencing significant growth, with reported transactions reaching between $6 billion and $8 billion monthly, potentially rising to $9 billion by 2030 if current trends continue [1][2] - The majority of these transactions are now dominated by stablecoins, which account for up to 90% of reported transactions in some months, indicating a shift away from Bitcoin [2] - Brazil's tax authority, Receita Federal, is implementing a new reporting system called DeCripto, set to replace existing rules by July 2025, to better track the growing crypto economy [3][5] Regulatory Changes - The new DeCripto system will be based on the Crypto-Asset Reporting Framework (CARF) developed by the OECD, allowing for automatic exchange of tax information between jurisdictions [4] - Under DeCripto, exchanges will be required to categorize transactions into specific types, including crypto-to-fiat trades and transfers to unhosted wallets, with data collection starting in January 2025 [5] - Brazil's central bank is also introducing extensive crypto regulations, establishing a licensing regime for crypto service providers and requiring them to hold between $2 million and $7 million in capital [6] Compliance Requirements - Companies must comply with the new regulations within a nine-month window, or they risk being barred from operating in Brazil [7]