Brazil is set to summon international crypto exchanges such as Binance and Coinbase to gather information on their operations and partnerships with local crypto service providers. These exchanges, including OKX and KuCoin, are not based in Brazil but are actively operating in the country.
The Brazilian tax authorities announced their plans to issue an ordinance this week, requesting operational details from these exchanges. Andrea Chaves, the deputy secretary of inspection at Brazil’s revenue service, explained that the objective is to gain insight into how these exchanges function within Brazil and ensure compliance with the new tax regulations.
There is a particular interest in understanding the collaborations between foreign exchanges like Binance and Coinbase with local service providers in Brazil. For example, Binance, the largest cryptocurrency exchange globally, partnered with Mastercard to launch the Binance Card in Brazil last year. Brazil is considered one of Binance’s most significant markets, and the company plans to continue investing in new services for local users.
Brazil has seen a rise in cryptocurrency adoption, with one in five Brazilians owning digital assets. The country is projected to generate $1.5 billion in digital asset revenues by 2027, according to a report from Metaco. Last year, Brazilians declared over 133.6 billion reais ($24.6 billion) in crypto assets, marking a significant increase from the previous year.
In response to the growing crypto market, Brazil’s Central Bank and the Securities and Exchange Commission of Brazil (CVM) are working on regulations to protect consumers and combat financial crimes. This initiative comes as Brazil emerges as one of the leading countries in cryptocurrency adoption in Latin America.