Revenue enhancement authorities in Brazil have been more active in regulating the crypto market resulting in what 1 observer has called a cooling of the market for smaller exchanges.

Following new application of new taxation norms in August 2019, Brazil has recently seen some of the results of those actions. Cointelegraph Brasil reported that two major cryptocurrency exchanges based in the South American nation have been shut down following threats of heavy fines and the immediate effects of the regulations.

Acesso Bitcoin was one of the exchanges to voluntarily close their doors. Cofounder Pedro Nunes reportedly blamed the new taxation rules for the closure:

"Later on the Federal Revenue Service introduced these rules nosotros noticed a significant decrease in the traded volume. Nosotros also feel that the market place has cooled off for smaller exchanges."

Latoex, another Brazil-based crypto exchange, faces similar issues. The company is looking at a 100,000-Brazilian existent (BRD) fine if it does non comply with a suspension gild issued past Brazil's Securities and Substitution Committee.

Electric current Crypto Regulations in Brazil

Because Brazil does not have a dedicated constabulary to deal with crypto at this fourth dimension, all exchanges fall nether the purview of Normative Didactics No. 1888 issued by the Department of Federal Revenue. All companies carrying out crypto transactions in Brazil must report them or face fines, ranging from 500 BRD to 1500 BRD, or from 120 to 360 USD.

Both houses of the National Congress of Brazil are looking at proposals to regulate the land'due south crypto industry. A special commission is analyzing and making revisions to such a motion, Bill 2303/2015. Meanwhile, the Senate is reviewing two other bills, PL 3825/2019 and PL 3949/2019. Every bit of February. 2020, no specific legislation has been enacted to constitute regulations for the cryptocurrency market in Brazil.