#220: IOF tax on stablecoins could generate R$5 billion in revenue
Plus: Crown raises $13.5 million Series A; Itau recommends 1-3% bitcoin exposure
Olá pessoal!
Welcome back to Brazil Crypto Report for the week of December 8-12, 2025.
As we wind down the 2025 year in crypto in Brazil and globally, it feels like moving we’re truly transitioning from the old world to the new world. The days of “weird defi”, easy money, random tokens mooning and the general get rich quick mentality are fading.
Regulation is coming into place in Brazil and elsewhere that will basically make crypto just another subset of fintech. The anonymous privacy-enhanced crypto economy will remain intact, but this will largely exist independently of the regulated crypto universe.
This bifurcation was always inevitable, it was just a question of how long it would take before we got here. That said, crypto is finally positioned to start adding real value to the global economy and hopefully live up to its potential.
🗞️ Top stories in this week’s edition:
BRLV issuer Crown raises US$13.5 million in Series A funding from blue chip crypto VC Paradigm
IOF on stablecoins could generate R$5 billion in revenue for the government, say economists
ABToken proposes new Central Bank regulatory sandbox for crypto OTC markets
Itau recommends 1-3% bitcoin exposure
Federal Police launch next phase of “Pharaoh of Bitcoins” operation
Thanks for reading and have a great week!
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New Podcasts!
This week I spoke to Thiaga Barbosa who is a partner at Salles Nogueira Advogados in Sao Paulo and an expert on crypto tax law in Brazil. We discuss several of the big impending changes to the country’s crypto taxation regime.
The most of notable of these is the Receita Federal’s new Decripto scheme that incorporates international information sharing practices. In theory, this means that exchanges domiciled in other countries will need to share Brazilian customer transaction information with Brazil’s authorities.
This move, combined with the VASP licensing regime being rolled out by the Central Bank, eliminates most of the gray areas or loopholes by which it has been possible to hide crypto asset gains from the Receita Federal.
As Thiago and I discuss, this is part of a broader financial surveillance push by the Brazilian government that extends well beyond just crypto.
The other burning topic we discuss is the government’s efforts to apply the IOF financial transactions tax to stablecoins. Despite the Ministry of Finance’s insistence that it has the power to do this, Thiago explains that such a move would have very flimsy legal standing and realistically will not be possible without enabling legislation being signed into law. This will inevitably happen eventually, but there is no immediate timeline.
Thiago argues that the government is engaging in “rhetorical warfare” to scare companies and individuals away from using stablecoin transactions and redirect them to instead use conventional channels where IOF can be collected.
If you’re interested in learning more, OKX Brazil CEO Guilherme Sacamone has a good op-ed in Exame exploring this dynamic. He goes even further to argue that the Ministry of Finance is kneecapping the Central Bank’s attempt to bring a stable regulatory and operating climate to the market.
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BRLV issuer Crown raises US$13.5 million in Series A funding
Crown, the institutional-focused issuer of the real-pegged stablecoin BRLV, successfully closed a Series A funding round led by top-tier crypto venture capital firm Paradigm.
The investment totaled US$13.5 million and valued the company at US$90 million. This capital is aimed at scaling Crown’s unique, bank-grade infrastructure, which differentiates itself by backing BRLV with high-liquidity National Treasury securities and offering holders a real, legal guarantee over the reserves via a registered collateral agent.
BRLV’s architecture also allows for the automated sharing of reserve yields with institutional partners, creating a competitive advantage for accessing the high-interest Brazilian market with 24/7 liquidity.
CEO John Delaney told CoinTelegraph Brasil
“Today, the way foreigners can access interest rates in Brazil is very complex, expensive and time-consuming. It is necessary to open an account in a Brazilian bank and then buy government bonds. This is a process that can take five to six months. Crown can offer similar, if not better, conditions, with one-click execution and 24/7 liquidity.”
The Block Portal do Bitcoin Exame
IOF on stablecoins could generate R$5 billion in revenue
Applying the IOF financial transactions tax to stablecoins could generate as much as R$5 billion (US$1 billion) in revenue for the government, according to economists interviewed by Valor.
Tiago Sbardelotto, an economist at XP, estimates that the volume of transactions involving stablecoins in Brazil is around R$ 100 billion per year, potentially reaching R$ 130 billion.
This estimate is based on the 3.5% IOF rate practiced in traditional foreign exchange, which would represent an increase of R$3.5 billion to R$4.5 billion in IOF, since stablecoins account for 91% to 97% of annual cryptocurrency transactions in the country.
Italo Franca, head of fiscal policy at Santander, also pinned potential revenue to the government at R$3 billion to R$5 billion, though he warned that the implementation of the tax might alter the behavior of the taxpayers.
“With taxation, there may be a reduction or accommodation in the volume that is being used so far.”
ABToken proposes Central Bank regulatory sandbox
The trade group ABToken has proposed that the Central Bank create a regulatory sandbox to address problems in the OTC trading market for crypto assets.
The current friction is that trading in this type of environment involves large transaction volumes outside of traditional brokerage platforms, many of which operate without clear reporting and supervision standards.
The group said in a statement:
“It would create a controlled environment in which companies and institutions can test innovative products, services, and business models under the direct supervision of the Central Bank, without the need to fully comply with all regulatory requirements from the outset.”
The initiative will be presented to the bank in January by RezolvePay, Bloquo, and ABToken’s associated OTCs.
CoinTelegraph Brasil Valor Portal do Bitcoin
Federal Police launch next phase of “Pharaoh of Bitcoins” operation
Federal Police launched Operation Kryptolaundry, a follow-up to the 2021 Operation Kryptos that targeted Glaidson Acacio dos Santos, aka the “Pharaoh of Bitcoins”, and his GAS Consultoria pyramid scheme.
The operation focuses on illegal cryptocurrency fundraising and money laundering. One of the largest crypto pyramid schemes ever in Brazil, the group is accused of defrauding over 62,000 individuals by promising a 10% monthly return on crypto investments. The investigation indicates the group moved over R$2.7 billion and used dozens of shell companies to purchase assets.
Police executed 24 search and seizure warrants and secured nine preventive arrests across Brazil and Spain. The judiciary ordered the freezing of up to R$685 million in assets. The individuals face charges including financial crimes, money laundering, and criminal organization.
Kamila Martins Novais, who was arrested for involvement in the GAS Consultoria Brasilia branch was released from custody due to a release warrant being issued by a court.
It was also reported that Flavio Bolsonaro is working as a defense lawyer for two of Glaidson’s former partners at GAS Consultoria.
Valor CoinTelegraph Brasil Portal do Bitcoin
Crypto M&A season in Brazil kicks off
CoinTelegraph Brasil reports that at least three larger crypto companies in Brazil have been approached by smaller entities looking to be acquired - a result of the stringent regulatory capital requirements being rolled out by the Central Bank.
Many of the smaller entities were shocked that the requirements issued by the Central Bank were far above market expectations.
The larger companies said that they have received NDAs and that acquisition conversations have begun.
Emilia Campos, founding partner of the law firm Malgueiro Campos Advocacia, said:
“The Central Bank’s new rules have had an immediate effect: small exchanges and crypto companies are rushing to sell themselves before they go bankrupt. The minimum capital, which should increase the sector’s security, has become a regulatory guillotine for players who never brought systemic risk. The result is a less competitive and increasingly concentrated market, ironically, in the name of ‘prudence’.”
An entrepreneur involved in the discussions told CoinTelegraph
“Selling a company is good when others want to buy it, not when you want to sell, because in that case, the buyer lowers the valuation and generates more pressure, even more so in this situation where there is also unfavorable regulatory pressure on small businesses and startups.”
Itau recommends 1-3% bitcoin exposure
Brazil’s largest private bank is officially recommending that investors maintain an allocation of 1-3% of their portfolio in bitcoin for the year 2026, according to a market bulletin authored by Renato Eid.
The note argues that bitcoin has consolidated as a relevant asset for portfolios seeking real diversification in light of macro economic risks and global uncertainty.
“It is precisely in this context that Bitcoin assumes a relevant role: an asset distinct from fixed income, traditional stocks, or domestic markets, with its own dynamics, return potential, and — due to its global and decentralized nature — the ability to act as currency protection.”
CoinTelegraph Brasil Portal do Bitcoin The Block
🗞Brazil Crypto News Rundown
📈 Markets
Bitcoin, Ethereum, and dollar-backed stablecoins collectively generated over R$16.7 billion in trading volume in Brazil, according to a Biscoint report based on API data from eleven major exchanges. (CoinTelegraph Brasil) (Portal do Bitcoin) (Valor Investe)
Santander Brazil announced the integration of Toro Investimentos, an acquired fintech, under the single brand Santander Corretora. This means the bank will offer an expanded product range to its clients, including crypto assets. Alessandro Chagas, Director of Investments at Santander, said in a statement:
“We will expand Santander Brokerage’s offering with even more complete and competitive products, including, soon, crypto assets at attractive costs. It’s a combination that elevates our client’s end-to-end experience.” (CoinTelegraph Brasil) (Valor)
The Brazilian ETF market is growing, with assets reaching R$75 billion and the number of individual investors increasing from 42,000 to 666,000 in the last seven years, but its adoption rate (10% of investors) is significantly lower than in the US (50%) and Europe (20%), according to a study by B3. (CoinTelegraph Brasil)
The real-backed stablecoin BBRL, issued by Grupo Braza has successfully integrated with the BNB Chain. (CoinTelegraph Brasil)
Banco BV and Justoken launched Brazil’s first tokenized Certificate of Agribusiness Credit Rights in hopes of automating collateral validation and management while modernizing rural credit. Rogerio Monori, Executive Director of Wholesale at Banco BV, said in a statement:
“We are redesigning how the wholesale market operates in agribusiness. Digitization and tokenization bring concrete gains in efficiency and security, eliminating manual steps and accelerating the operational cycle.” (CoinTelegraph Brasil)
The B3 exchange is undergoing a major technological overhaul, adopting DLT infrastructure to modernize its central depository for equities and fixed income, with the goal of preparing the exchange for the “tokenization of everything” and meet the market’s demand for 24/7, high-volume trading. (CoinTelegraph Brasil)
Mercado Bitcoin announced the launch of the FIDC MB Gênesis, making it Brazil’s first FIDC, or Receivables Fund, structured with a focus on digital assets. The fixed income fund is targeting a capital raise of R$100 million from institutional investors and asset managers. (CoinTelegraph Brasil)
The Central Bank resumed purchasing gold after a four-year pause, acquiring a total of 31 tons in September and October 2025. (Portal do Bitcoin)
Galapagos Capital launched its third ETFon the B3 exchange, named GBIT11, which provides Brazilian investors with direct and integral exposure to the BlackRock Bitcoin Fund (IBIT). (Livecoins)
BRICS nations are accelerating the implementation of direct settlements in local currencies, bypassing the US dollar as an intermediary, according to the “BRICS Economic Bulletin 2025” report. (Livecoins)
📲 Adoption
The government of Parana showcased significant progress on its vehicle tokenization initiative, the “Digital Vehicle Passport,” during the 1st Brazilian Vehicle Tokenization Forum in Curitiba. The project aims to create a unique, immutable, and traceable identity for vehicles, encompassing the entire history of an automobile from manufacturing to dismantling. (CoinTelegraph Brasil)
Crypto.com was named the winner in the “Cryptocurrencies and Exchanges” category at the Reclame Aqui Award 2025, an honor determined by consumer votes recognizing the company’s quality customer service and reliability, with BityBank placing second and OKX third. (Livecoins)
Z.ro Bank, a Brazilian crypto-native bank, has launched a new unit, Z.ro Digital Assets, dedicated to facilitating international payments and transfers using crypto assets. (CoinTelegraph Brasil)
Mercado Bitcoin partnered with the National Association of Brokerage and Distribution Companies (Ancord) to integrate crypto and blockchain content into its Continuous Education Program for investment advisors. (CoinTelegraph Brasil)
The Campo Grande City Council officially approved a bill recognizing the Mato Grosso do Sul city as a Hub for Innovation in Blockchain and Digital Economy. (CoinTelegraph Brasil)
Liqi Digital Assets launched a new corporate-focused RWA digital wallet that leverages the USDC stablecoin for the issuance, custody, and settlement of dollar-denominated structured credit tokens. CEO Daniel Coquieri said in a statement:
“With this architecture, investors gain access to dollar-denominated structured debt securities, tokenized on the blockchain, with a target return of up to 8% per year in USD — all within a 100% on-chain operational flow.” (CoinTelegraph Brasil)
🏛 Policy, Regulation and Enforcement
The Central Bank is expected to issue new guidance this week on how VASPs are expected to report required information to the authority. (Valor)
A Senate committee approved a bill that establishes a new legal framework for the Brazilian Payment System, including Pix. The core objectives are to modernize the system, enhance security, and ensure compliance with international standards. (CoinTelegraph Brasil)
The CVM extended the deadline for its public consultation on the revision of Resolution CVM 88, which modernizes rules for crowdfunding and adapts them for the tokenization market, from December 23, 2025, to January 23, 2026. (Portal do Bitcoin) (Valor Investe)
Brazilian police launched Operation Cripto Car, blocking R$2.8 million worth of bitcoin and issuing ten arrest warrants to dismantle a criminal group impersonating luxury car dealers converting victims’ funds into crypto. (Portal do Bitcoin) (Livecoins)
The Receita Federal has already applied approximately R$54 million in fines related to errors, inconsistencies, and omissions in the declaration of cryptocurrency gains and transactions. (Portal do Bitcoin)