Core Insights - Brazil is considering implementing a new tax on cryptocurrency use for international payments, which could significantly impact the digital asset sector's handling of cross-border transactions [1][2][3] Regulatory Changes - The Finance Ministry is exploring the extension of the financial transaction tax (IOF) to include transfers involving virtual assets and stablecoins, which have been reclassified as foreign-exchange instruments by the central bank [2][3] - The new regulations aim to close a regulatory gap rather than generate new revenue, although they may improve public finances amid Brazil's fiscal challenges [3] Market Overview - Brazil's cryptocurrency market has seen rapid growth, with transactions reaching 227 billion reais (approximately $42.8 billion) in the first half of 2025, marking a 20% increase from the previous year [4] - Stablecoins, particularly USDT, dominate the market, accounting for about two-thirds of the transaction volume, while Bitcoin represents only 11% [4] Implications of New Rules - The reclassification of stablecoins as foreign-exchange instruments is intended to prevent regulatory arbitrage in the foreign-exchange market and reflects their use for low-cost international payments [5] - The new rules, effective February 2026, will categorize any purchase, sale, or exchange of stablecoins, as well as international transfers using virtual assets, as foreign-exchange operations [6] - The federal tax authority has expanded reporting requirements to include transactions through foreign platforms operating in Brazil, laying the groundwork for potential new tax obligations [6]

Core Viewpoint - Brazil is considering implementing a tax on the use of cryptocurrencies for international payments to close a regulatory loophole in its foreign-exchange transaction levies [1][2]. Group 1: Taxation and Regulatory Changes - The Finance Ministry is exploring the expansion of the financial transaction tax (IOF) to include cross-border transfers using virtual assets and stablecoins, which have recently been classified as forex operations by the central bank [2][4]. - Currently, crypto transactions are not subject to the IOF tax, but investors are required to pay income tax on capital gains exceeding a monthly exemption [2][4]. - New central bank rules, effective in February, will classify any purchase, sale, or exchange of stablecoins as a foreign-exchange transaction, covering various forms of international payments and transfers [7]. Group 2: Market Impact and Revenue Generation - The potential tax change aims to close a regulatory gap and could lead to increased public revenue, which is critical as Brazil aims to meet its fiscal targets [4][6]. - Brazil's crypto market has experienced significant growth, with transactions reaching 227 billion reais (approximately $42.8 billion) in the first half of 2025, marking a 20% increase from the previous year [5]. - The majority of this transaction volume (two-thirds) was attributed to USDT, a dollar-backed stablecoin, while bitcoin accounted for only 11% of transactions [5][6].

Core Insights - Norway has seen a significant increase in cryptocurrency tax declarations, with over 73,000 individuals reporting digital asset holdings in their 2024 tax returns, marking a 30% rise from the previous year, the largest year-on-year increase since records began [1] - The total declared value of cryptocurrency holdings has more than doubled to NOK 40.3 billion ($3.9 billion), the highest figure ever reported [1] Group 1: Tax Compliance and Measures - The increase in declarations reflects the success of measures aimed at encouraging voluntary compliance, as stated by Tax Director Nina Schanke Funnemark [2] - In 2019, fewer than 10,000 Norwegians reported owning crypto assets, which has now grown more than sevenfold [2] Group 2: Market Influences - The rise in declarations is also attributed to the tax agency sending digital reminders to taxpayers who may own crypto but failed to declare them [3] - The data reflects rising market prices throughout 2024, significantly boosting the total declared value of digital holdings, with crypto gains reaching NOK 5.5 billion and reported losses totaling NOK 2.9 billion [3] Group 3: Taxation Framework - Under Norwegian law, cryptocurrency is classified as a capital asset, subjecting profits and losses from trading to capital gains tax at a flat rate of 22% [4] - The First-In, First-Out (FIFO) method is used to calculate the cost basis of crypto sales, and crypto holders must declare their digital assets as part of their net wealth each year [6] - Wealth above NOK 1.7 million is subject to Norway's wealth tax, with rates varying based on income and municipality [6]