Brazil’s Finance Minister Dario Durigan is postponing cryptocurrency tax policy until after the country’s October 2026 presidential election to avoid pushing through “divisive” tax changes in an election year.
Regulators and government officials originally scheduled a public consultation on cryptocurrency tax policy for later this year, which may be postponed until 2027, but still “remains on the radar,” sources familiar with the matter said Reuters.
Brazil ended its no-tax policy on profits from smaller sales or transfers of cryptocurrencies in June 2025, switching to a 17.5% flat tax on capital gains from cryptocurrencies, including gains made from offshore holdings and self-custodial holdings.
Under previous rules, residents who sold up to 35,000 Brazilian reals, equivalent to about $6,587 per month, were exempt from capital gains tax on any gains, and investors who exceeded that threshold were subject to progressive tax rates ranging from 15% to 22.5%.
In November 2025, Banco Central do Brasil, the country’s central bank, published rules that treat stablecoin transfers as foreign currency exchanges and are subject to the same tax rules.
The Brazilian government is also looking at proposals to tax cryptocurrencies used in international payments and adjusting its reporting rules to be consistent with regulations under the Crypto-Asset Reporting Framework (CARF), an international standard for monitoring cryptocurrency transactions.
The decision to suspend cryptocurrency tax consultations comes at a time when the South American country is rapidly adopting cryptocurrencies and the industry is growing in Brazil.
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Brazil is one of the countries with the highest cryptocurrency adoption in the world
Brazil ranks fifth in the Chainalytic Global Adoption cryptocurrency ranking Index and ranks first in adoption in the Latin American region.
According to the country’s data, the country has a population of over 213 million people, with a median age of 33.5 years, and over 91% of the population lives in urban areas. data from Worldometer.
According to Chainalytic, in 2025, “cryptocurrency adoption in Latin America increased by 63%, reflecting growing use in both the retail and institutional segments.”
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