#192: IOF tax chaos creates opportunity for stablecoins in Brazil
Plus: Import taxes on BTC mining hardware lifted; Binance Pay integrates Pix
Olá pessoal!
Welcome back to Brazil Crypto Report for the week of May 19-23, 2025.
I’m headed to Bitcoin Las Vegas tonight. This will be my first Bitcoin Conference since 2021 in Miami, which in my opinion was by far the greatest crypto conference of all time. It was two years of pent-up pandemic lockdown energy released at once.
I moderated a main stage panel about compliance and regulation with Chris Giancarlo and Brian Brooks, which ended in us getting booed off stage because of some controversial comments Giancarlo made about KYC.
Seeing your token 1000x is great, but have you ever been booed off a stage by 5,000 people? It’s a thrill like no other.
The best part of the conference was when a Dogecoin enthusiast interrupted a main stage panel and made the security guys drag him off the stage 😁
Needless to say, the industry has professionalized a bit since then. I’ll report back next week
🔎 What’s in BCR this week?
Central Bank says it may regulate privacy coins and tokenization
BRLA rebrands as Avenia, raises US$2.2 million seed round
Binance Pay integrates Pix
Brazil temporarily lifts import taxes on bitcoin mining hardware
IOF tax chaos creates opportunity for stablecoins in Brazil
Thanks for reading and have a great week!
- AWS
🙌 🇧🇷Brazil Crypto Report is a free publication; if you wish to support my work you can do so by hitting the button below👇
🎙New Podcast!
For this week’s episode I released the audio version of the X Spaces we hosted last week about Brazil’s proposed stablecoin rules. We received a lot of requests from folks asking if this would be available in a format other than X Spaces, so we made it available on Spotify and Apple Podcasts.
🎧 You can find Brazil Crypto Report content wherever you listen to podcasts: Spotify | Apple Podcasts | Amazon | Anchor | YouTube
BRLA rebrands as Avenia, raises US$2.2 million seed round
BRLA Digital, issuer of the BRLA stablecoin, has rebranded as Avenia as it expands its operations to other Latin American countries and to the US.
It also announced a R$12 million (US$2.2 million) seed round, co-led by Big Bets and Fluent Ventures. Avenia will use the funds to obtain regulatory licenses, strengthen compliance and expand its technology stack.
The BRLA stablecoin, paired to the Brazilian real, will maintain its name.
CEO Matheus Moura told Valor that the rebrand reflects the company’s evolving identity as a cross-border payments play:
“More than 90% of our results today come from the cross-border payments platform, despite being widely recognized as the issuer of BRLA.
“The rebranding brings greater clarity to what Avenia is today — and what we are building for the coming years.”
Avenia says it has processed R$3 billion in transactions since launching in 2023.
Central Bank may regulate privacy coins
Gilneu Vivan, director of regulation at Brazil’s Central Bank, revealed that the entity may regulate certain virtual assets, in addition to the regulatory framework that it is expected to release later this year.
Specifically, cryptocurrencies like Zcash or Monero that prioritize user privacy would be the target of these additional regulations, due to the traceability challenges that these coins offer.
New regulations for asset tokenization are also likely.
Speaking at the Fórum Bancos & Banking, hosted by Acrefi and Cantarino Brasileiro, he said:
“We will regulate virtual assets this year. Financial institutions will be able to transact and negotiate virtual assets and, in the coming years, we will study the regulation of some assets.”
Valor BlockNews Portal do Bitcoin CriptoFacil
Binance Pay integrates Pix
Binance has integrated Pix into its Binance Pay payment platform.
Users of the platform can now use Binance Pay to make instant payments via Pix to bank accounts and merchants that accept payments via the system. Binance Pay currently allows 100 different cryptocurrencies to be used for payments via Pix.
Guilherme Nazar, Binance’s VP for Latin America, noted that this is the first time Binance Pay has been integrated with a national payment system. He said in a statement:
“It allows our users in Brazil to use their cryptocurrencies for payments at any commercial establishment and to anyone in the national territory, quickly, safely and easily.”
Valor BeinCrypto Livecoins CoinTelegraph Brasil
Brazil temporarily lifts import taxes on bitcoin mining hardware
Brazil’s Ministry of Development, Industry, Commerce and Services has temporarily removed import taxes on two sets of equipment related to bitcoin mining.
"functional unit for operating cryptocurrency servers consisting of: a mobile data center with electrical equipment, network and pumping system with a flow rate equal to or greater than 85m³/h, connected by pipes with two dry cooler heat exchangers with a cooling capacity of 650kW each (1300kW total) and maximum total fan power less than or equal to 32kW"
"complete storage and cooling stations for servers dedicated to cryptocurrency mining using the SHA256 algorithm, equipped with metal shelves with a storage capacity equal to or greater than 200 servers, an exhaust system, control and distribution panels, a pumping device for circulating liquid to cool the servers and dry cooling towers"
The exemption will come into effect starting Tuesday, May 27.
Exame Portal do Bitcoin Livecoins
IOF tax chaos creates opportunity for stablecoins in Brazil
Brazil’s Ministry of Finance shocked markets this week by announcing a new round of financial transactions taxes, known as IOF, only to partially walk them back following an outcry from the market and government.
The changes would have increased the fee for Brazilians sending money to overseas accounts from 1.1% to 3.5%, and would have taxed investments in foreign assets at a 3.5% rate (previously zero).
These were reversed within hours after being announced, but a new 3.5% IOF tax on the purchase of foreign currency, such as dollars, remains in effect.
While this sounds bad, there are some ways in which this could benefit crypto adoption in the country.
Rony Szuster of Mercado Bitcoin said that the exchange has already been seeing greater interest in stablecoins as a hedge against future exchange restrictions. He told Portal do Bitcoin:
“A measure such as the increase in the IOF could reinforce this trend, by making stablecoins an even more attractive alternative for those who want exposure to the dollar in a digital, practical way and with fewer barriers”
Fernando Marques Borges, director of Abracam (a trade group of forex brokers) said the new IOF would stimulate the use of cryptocurrencies to evade the tax.
There are some problems, however.
Carlos Russo, CEO of Bluegreen, wrote on Linkedin that he expects three outcomes from this new tax
1️⃣ Stability in stablecoin spreads between the main exchanges and the spot dollar in the short term
2️⃣ Significant increase in demand for stablecoins as an efficient alternative for the internationalization of assets
“The increase in the rate on outflow transactions involving different natures may stimulate, in the medium term, a significant growth in the demand for stablecoins.
“This movement is due to the widening of the cost differential between stablecoin purchase transactions in Brazil and access to the dollar via traditional methods, such as cash remittances and investments abroad.”
3️⃣ Unviable business model for purchasing stablecoins through exchanges with the nature of virtual assets
“Several virtual asset brokers and banks were affected by the measure, seeing their daily volumes drastically reduced and with significant impacts on their revenues.”
“Some brokers and banks suspended their operations this morning while they adjust their operational models.”
He concluded by highlighting that there may be more changes coming:
“Given this new scenario, it is important that companies remain vigilant, as new decrees may be published in the future.”
The original package was estimated to generate R$20 billion in 2025 and R$41 billion in 2026 — much needed revenue to hit the current government’s target of zero primary budget deficit (which excludes interest payments).
Eduardo Cohn, partner at Heritage Capital Partners, told Valor International that the IOF tax proposals should be seen as an attempt to garner political support ahead of elections next year:
“The government is looking for money to win re-election. Today’s decision shows the administration’s DNA—it spends too much, and it spends poorly. With the INSS [National Institute of Social Security] scandal and falling approval ratings, it’s under pressure and trying to bounce back.
Next year is an election year, and to recover, the government needs money it doesn’t have.”
🗞Brazil Crypto News Rundown
📈 Markets
Braza Group has launched a dollar-pegged stablecoin called USDB on the XRP Ledger. Earlier this year, the exchange operations company launched BBRL, a real-pegged stablecoin, on the same platform. CEO Marcelo Sacomori said that he expects USDB to represent 30% of the Brazilian market for dollar-pegged stablecoins by year’s end. He said in a statement:
“We are committed to offering a stablecoin that not only meets, but exceeds the highest standards of security and compliance.” (Valor) (BeinCrypto) (Portal do bitcoin)
Meliuz is looking to use the MicroStrategy playbook to raise R$150 million in funds that can be used to invest in bitcoin. The first option is issuance of securities representing convertible or non-convertible debt securities. The second is a new issuance of common shares via a public offering. The company says it has engaged BTG Pactual to act as the coordinator for a potential public offering. (Exame) (Portal do Bitcoin) (Livecoins) (CriptoFacil) (CoinTelegraph Brasil)
Patriota Coin, a memecoin promoted by Eduardo Bolsonaro, appears to have been abandoned. (Portal do Bitcoin)
Bitcoin trading volumes in Brazil topped USDT volumes during the 24 hour period after BTC hit its all time high. (Livecoins)
Banco Bradesco obtained approval from the CVM to launch its first investment fund 100% focused on bitcoin, known as the Bradesco Bitcoin FIF. (CoinTelegraph Brasil)
Flávio Scarpelli, CEO of Vortx QR Tokenizadora, discussed the three stages of tokenization adoption in Brazil with BeinCrypto.
📲 Adoption
The change in messaging around Drex from a digital version of the real to new infrastructure for the Brazilian financial system involved a “communication adjustment” but not a “change in route”, Joao Gianvecchio — head of innovation and strategy at Banco BV, argued. He noted that 80% of the bank’s current innovation projects involve real world asset tokenization. (Exame)
BitGo announced the launch of its Crypto-as-a-Service platform. (BeinCrypto)
Furniture e-commerce site Homedock is accepting bitcoin as a form of payment. (Livecoins)
Numerous platforms like Nubank and Banco BV waived all fees on cryptocurrency transactions on its platform to commemorate Bitcoin Pizza Day on May 22. (Portal do Bitcoin) (Livecoins) (CoinTelegraph Brasil)
Drex and blockchain are key topics of discussion at Febraban Tech, which takes place June 10-12 in Sao Paulo. (BlockNews)
Former Brazilian national team footballer Adriano Imperador took to social media to promote his investments in “magic coins”. (Livecoins)
NovaDAX announced Guilherme Fais as its new head of finance. (BeinCrypto)
Crypto.com announced a partnership with Livelo that allows Crypto.com card users to earn points that can be redeemed globally. Thales Freitas, General Manager of Crypto.com in Brazil, said:
"We want the new Crypto.com Visa global card to be the preferred card for Brazilians both abroad and in Brazil.” (CoinTelegraph Brasil) (Livecoins)
🏛 Policy, Regulation and Enforcement
NG.Cash received its payments institution license from the Central Bank. (Valor)
Brazil’s Central Bank should provide regulatory clarity for companies that operate with encryption technology in the digital asset space, Dinamo Networks’ Jean-Michel Guillot argued at a Blockchain Rio kick-off event in Sao Paulo last week. He explained:
“If an agent is able to block balances, they have part of the control. So, shouldn't they have some accountability requirements?” (Valor) (Livecoins)
The CVM suspended the trial of alleged crypto pyramid scheme BlueBenx and its executives after a request for review. President Roberto Cardassi and four other executives are accused of fraud using cryptocurrencies and irregular public offering of securities. Cardassi was released from prison on May 15. (Valor) (Portal do Bitcoin) (Livecoins)
Criminal organizations used cryptocurrencies to launder funds stolen from beneficiaries of retirement and pension funds, as part of the INSS scandal. Jorge Messias, chief minister of the Attorney General’s Office, emphasized that judiciary bodies have been requested to track financial transactions made through crypto brokerages:
“In the request for blocking that we made two weeks ago, we requested that the court track cryptocurrency brokerage firms to understand where these funds went if they were used.” (InfoMoney) (Livecoins) (CoinTelegraph Brasil)
Wave Intermediações e Tecnologias, a now shuttered crypto brokerage, is accused of laundering R$300 million in a case involving the Corinthians football club and Via de Bet, and online betting platform. (Portal do Bitcoin) (CoinTelegraph Brasil)
GAS Consultoria was formally declared bankrupt by a Rio de Janeiro court. The crypto pyramid scheme, run by Glaidson Acacio dos Santos, has accumulated a debt of more than R$3.8 billion to 62,604 creditors. (Portal do Bitcoin) (Livecoins) (CoinTelegraph Brasil)
The Attorney General’s Office announced that it had blocked a foreign website simulating a Brazilian news portal to promote scams using the likeness of Finance Minister Fernando Haddad. (Portal do Bitcoin) (Livecoins) (CriptoFacil)
Federal Police launched two simultaneous operations against different criminal schemes using cryptocurrencies. In total, 26 search and seizure warrants and 11 arrest warrants were executed in Santa Catarina, Parana, Sao Paulo and Maranhao. (CoinTelegraph Brasil) (CriptoFacil) (Livecoins)