If approved, the new tax reform could introduce a 30% levy on undeclared cryptocurrencies.
Brazil is preparing to change the tax treatment of cryptocurrencies with a new legislative proposal. The government has introduced a bill that would allow citizens to declare previously hidden digital assets to the tax authorities, paying a 30% charge.
The legislative proposal, contained in Bill 458/21, was approved by the Brazilian National Congress on October 29 and now awaits a final vote in the Senate. If passed, it will introduce the Special Regime for Asset Update and Regularization (REARP), allowing taxpayers to declare undeclared or undervalued assets, including real estate and digital assets.
Investors who decide to comply will face a total rate of 30%, split equally between tax and administrative penalty. The tax will apply to the value of assets as of December 31, 2024.
Growth of the sector draws tax authority attention
The digital asset sector in Brazil is experiencing strong growth. According to a recent Chainalysis report, transaction volumes in the country reached BRL 1.7 trillion between mid-2024 and mid-2025, marking a 110% increase in twelve months. Stablecoins are the main driver of this growth, used for international remittances, commercial payments, and corporate transactions.
In this growth context, the government views the new tax as a dual tool: on one hand, it provides regulatory clarity; on the other, it represents an opportunity to increase national revenue.
Political controversy
However, the proposal is not universally supported. Opposition lawmakers accuse the government of reintroducing tax measures previously rejected. Politicians such as Sóstenes Cavalcante and Gilson Marques have called the initiative a “government expedient” to raise tax revenue, while supporters argue it is necessary to strengthen the state budget for 2026.
