TechFlow News, March 15: According to CoinDesk, on March 15, the Brazilian Association of Cryptocurrency and Fintech Companies (ABcripto), the Brazilian Association of Fintech Companies (ABFintechs), the Brazilian Association of Cryptocurrency Asset Managers (Abracam), the Brazilian Association of Token Issuers (ABToken), and Zetta jointly issued a statement opposing the extension of the Tax on Financial Transactions (IOF) to stablecoin transactions. These associations collectively represent over 850 companies in Brazil.
The associations argue that subjecting stablecoin transactions to taxation would conflict with Brazil’s existing legal framework and harm the country’s cryptocurrency industry. They contend that such a move could violate the Brazilian Constitution and the Virtual Assets Act, enacted in 2022. According to an auditor from the Brazilian Federal Revenue Service, the monthly trading volume in Brazil’s cryptocurrency market stands at approximately $6–8 billion, with stablecoin transactions accounting for roughly 90% of this total.
