Following Japan, Tax Regulator Publishes Draft on Cryptocurrency Taxation in Russia.
The Department of Federal Revenue of Brazil (RFB) is seeking to receive monthly reports on crypto currency operations, according to a document released by the RFB.
Legal entities and individuals residing in Brazil are now obliged to report all the transactions they have carried out at foreign crypto exchanges
In the paper, the RFB has announced that Brazil-based crypto exchanges are now obliged to send them detailed reports on all crypto-related operations on monthly basis. The companies have to reveal the amounts of transactions and the identity of the customers who deals in cryptocurrency.
The RFB’s draft on crypto taxation also sets a range of fines for those who fail to report their transactions. For the delay of a tax declaration, citizens will have to pay up to 1,500 Brazilian reals ($400). In case the information provided is insufficient or false, the RFB could charge up to 3 percent of transaction value as a fine as well.
The tax watchdog has already opened a public consultation to receive proposals on the new regulation: notes will be accepted from till Nov. 19.
In late October, the Federal District Court of Brazil forced major banks Banco do Brasil and Santander Brasil to reopen the accounts for local crypto exchange,, The judge ruled that the banks’ decision to close the crypto-related accounts was “abusive conduct” violating consumer protection rules.
On Wednesday, the Japan Financial Services Agency (FSA) announced that the cryptocurrency industry would be given a self-regulatory approach. This essentially means that the Japan Virtual Currency Exchange Association (JVCEA) is able to correctly discipline exchanges in the event of a policy violation. An official at the FSA went on to say that because cryptocurrency is such a fast-moving space that industry experts would be more effective at proper regulation.
This is great timing for Japan as there have been several recent incidents of Japanese exchange hacks and fraud.
In September, Japanese exchange Zaif had a security breach which led to 5,966 BTC and some other altcoins totaling over $59 million to be stolen from the exchange. While the funds were a mix of user and company holdings, it’s clear more steps need to be taken to prevent events like this from happening.
To help combat these events, the earlier mentioned JVCEA is putting out regulations making it so Japanese exchanges can only store 10%-20% of users funds in hot wallets. The rest must be stored via more secure cold storage methods.
It will be interesting to see how the increasing amount of regulations will affect the price of cryptocurrencies. The fact that governments haven’t completely ruled out blockchain technology is a great sign.
let me know what is your opinion about blockchain & crypto & its application in near future ,
what impact will it brings to us.?