TechFlow news, January 14 — Júlia Rosin, the newly appointed president of the Brazilian Cryptoeconomy Association (ABcripto), recently stated that the association will file a lawsuit challenging the constitutionality of a government decree imposing the Financial Transaction Tax (IOF) on stablecoin transactions. Rosin emphasized that according to Brazil's crypto assets framework law (Law No. 14.478/2022), stablecoins are not classified as foreign currency, and the IOF applies only to currency exchange, not to crypto asset transactions.
Rosin noted that IOF is already paid during the issuance of stablecoins since they are backed by traditional currencies. ABcripto recommends establishing a working group to address any 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, presenting these viewpoints.
