Wednesday, August 17

Federal Revenue Auditor says Bitcoin volume in Brazil has doubled in one year

The fiscal auditor of the Federal Revenue of Brazil Jonathan José Formiga de Oliveira said that the volume of Bitcoin in Brazil calculated monthly, doubled in a year.

Jonathan participated in an event at the Chamber of Deputies, scheduled to discuss the issue of Financial Inspection in the Bitcoin and cryptocurrency sector. Furthermore, the issues of scams involving this market were also discussed among the guests.

The event took place for three hours this Wednesday morning (27), being broadcast throughout the country by TV Camera.

Federal Revenue Auditor says Bitcoin volume in Brazil has doubled in one year

Since August 2019, the Internal Revenue Service in Brazil was the first autarchy in the country to require the provision of information to people who invest in the cryptocurrency market. Thus, any negotiation involving these digital currencies that exceed R$30,000 must be declared to the RFB, which issued a normative instruction on the matter.

According to revenue auditor Jonhatan José, in December 2019, for example, 94 thousand Brazilians had provided information on earnings in the Bitcoin market. Importantly, that was just the last month of the first year of information provision by Brazilians.

According to the auditor, from then on, the statements involving Bitcoin for revenue began to grow exponentially. According to him, 202,000 individuals declared earnings with Bitcoin in December 2020, which already showed more than double that of 2019.

For him, the peak of declarations was in April 2021, when 617,000 citizens reported their gains in operations to the RFB. He said that the data is very significant and that the average for the months of 2021 exceeds individual declarations in previous years, indicating that many Bitcoin traders in Brazil are showing consistent gains this year.

“Note that this obligation only falls on the citizen who carries out transactions in excess of BRL 30,000 [por mês]. Note that, according to the legislation, not only in Brazil, but in the entire nation, it establishes in the tax section that all economic movement, all income earned, all ownership of assets and rights is subject to treatment, to a tax repercussion , whether at the municipal, state or federal level.

So, given this constitutional provision for tax administrations to charge taxes on this basis, this innovative monitoring was instituted”.

The auditor recalled that the RFB was innovative in launching its IN No. 1888/2019 for inspection and monitoring of transactions involving cryptocurrencies, already recognized even by the IMF and OECD.

For him, the performance of revenue is not limited to collecting information, but it also serves to monitor the individual’s equity flow. These collections are made with companies operating in the market, called cryptocurrency brokers.

Auditor believes that Brazilians are seeing Bitcoin as a natural asset, even without regulation

For Jonhatan José, Bitcoin and other cryptocurrencies are being seen by Brazilians as a natural asset, with gains indicating that they are believing in the system.

“It is a very strong volume, which reveals that Brazilians are increasingly believing and seeing cryptoactives as a natural asset, regardless of having regulation in the financial system, it is a legal, legitimate asset, they are investing. This is a flag. The Federal Revenue does not make this type of segmentation, value judgment, as to the nature of the income, but as to its tax repercussion.”

The auditor also stated that the statements delivered in 2021 were for R$ 126 billion in transactions involving Bitcoin, including purchases, sales and exchanges, among others.

According to him, this would give a declared monthly average of R$ 18 billion, which is also a fact that “pops the attention” of the Federal Revenue to the growth in the volume of resources that Brazilians are directing to cryptocurrencies. The monthly average in 2020, for example, was almost R$ 8 billion, an average monthly growth of more than 100%.

He also defended the regulation, indicating that the sector deserves a “look detached from ideologies and traditionalism, so that the Brazilian State has the necessary follow-up, monitoring and companies feel supported in a vision of normality“.