RIO DE JANEIRO, BRAZIL – The compulsory provision of information to the Federal Treasury on purchase and sale operations involving virtual currencies (cryptocurrencies or active cryptocurrencies) became effective as of Thursday, August 1st.
Bitcoin is the most famous of them. The measure applies to companies, individuals, and brokers using this financial transaction system.
The rules for this accountability are defined in Revenue Ruling RFB IN 1.888/2019. Information on each transaction must be reported monthly. Therefore, the first register will be carried out in September, based on data from August.
The rule states that information on transactions must be provided using the National Collection system, available through the Virtual Service Center (e-CAC).
Two declaratory measures (ADEs) from the General Coordination of Programming and Studies (Copes) were published in June. These include layout guidance manuals and system completion manuals related to the operations carried out using crypto funds.
Under the ruling, the information must be provided whenever the monthly amount of transactions, separately or jointly, exceeds R$30,000 (US$7,600) and encompasses all sorts of operations, such as purchase and sale, exchange, donation, transfer of crypto funds, among others.
Digital currencies
According to the Federal Treasury, the digital currency market in Brazil holds more investors than the São Paulo Stock Exchange (B3), which has some 800,000 people registered. Moreover, in 2018 alone, this market traded more than R$8 billion in the country.
The collection of information on this type of operation is a worldwide trend and, according to the Federal Treasury, has increased in several countries after several groups used the system to commit crimes such as money laundering, tax evasion and financing of drug and arms trafficking.
Under the rules, the information must be forwarded to the Federal Treasury by 11:59:59 PM, Brasília time, on the last working day of the month after the month in which the set of operations carried out using crypto funds occurred.
In other words: the information for August will be provided by the last working day of September, and so on.
The penalties for non-reporting information include fines ranging from R$100 to R$500 or from 1.5 percent to three percent of the amount of the unreported transaction.