Brazilian crypto association ABcripto opposes IOF tax on stablecoins, says it will take legal action

Julia Rosin, the newly appointed president of the Brazilian Cryptoeconomy Association (ABcripto), recently stated that the association will file a lawsuit against the Brazilian government if it issues a decree imposing the Financial Transaction Tax (IOF) on stablecoin transactions, arguing that such a move would be unconstitutional. Rosin emphasized that according to Brazil's crypto assets framework law (Law No. 14.478/2022), stablecoins are not considered foreign currency, and the IOF applies only to currency exchange, not to crypto asset transactions. Rosin pointed out that IOF is already paid at the issuance stage of stablecoins since they are backed by traditional currencies. ABcripto recommends establishing a working group to address any proposed tax changes on crypto assets through legal amendments and broader societal discussion. The association has already held technical meetings with Brazil's Ministry of Finance at the end of last year to present these viewpoints.