Brazil’s Finance Ministry is weighing an expansion of its financial transaction tax to cover certain cross-border payments made with digital assets. The move reflects growing efforts by the central bank to bring greater transparency to one of the world’s largest stablecoin markets by payment volume.

Closing regulatory gaps

According to two officials familiar with the discussions, Brazil is exploring how to tax the use of cryptocurrencies for international payments, aiming to close a loophole in its current tax regime for global financial transactions.

Rules set to take effect in February 2026 classify stablecoin transfers as foreign exchange dealings. The same designation will apply to international payments conducted with digital assets as well as transfers to and from self-custody wallets.

Until now, capital gains from crypto trades above set thresholds have been taxable, but crypto-based payments have not. Officials warn this gap has enabled misuse, including money laundering and underreporting of declared import values.

“I think money laundering is a bit of an over-exaggeration here—it mainly pertains to businesses and B2B or B2C payments. I’m sure the government is actually targeting businesses that aren’t laundering money, but may be underreporting numbers,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research.

Growing market, growing revenue opportunity

Brazil’s booming crypto market could offer meaningful revenue gains if taxed. The sector has expanded significantly, fueled largely by rising stablecoin usage. Tax data shows that transactions reached nearly $43 billion in the first half of 2025, a 20% year-over-year increase.

While some fear taxation could slow the market, central bank officials remain optimistic. They argue that taxing digital asset payments would increase visibility and reduce misuse.

“Brazil is one of the world’s largest stablecoin markets by volume, so this could become a live case study for FX-type regulations. But releasing regulations means the government is accepting them, which is a step in the right direction. Whether growth declines in the short term remains to be seen, but if businesses comply and fees stay reasonable, this should be positive for long-term growth,” Hugentobler added. The proposal still awaits approval from Brazil’s federal tax authority.

Sources:

https://www.reuters.com/world/americas/brazil-eyes-taxing-crypto-cross-border-payments-sources-say-2025-11-18/

https://www.paymentsjournal.com/brazil-considers-taxing-crypto-cross-border-payments/