Brazil’s finance minister delays divisive crypto tax plan

Brazil's finance minister, Dario Durigan, has postponed a public consultation regarding a proposed tax on certain cryptocurrency transactions, known as Imposto sobre Operações Financeiras (IOF). The proposed tax would classify some crypto transactions as foreign exchange operations, potentially subjecting them to rates as high as 3.5%. This decision comes amid pushback from industry groups, who argue that stablecoins should not be treated as foreign exchange instruments and that applying IOF would be unconstitutional. Durigan, who recently took office, aims to prioritize microeconomic measures and avoid contentious proposals during an election year. The ministry may also reconsider ending tax breaks on investment securities. The initial proposal followed a central bank classification of some crypto activity, particularly stablecoins, within foreign exchange rules.

(Source：CoinDesk)