Brazil's Finance Minister shelves cryptocurrency tax policy due to election

On March 22, Brazilian Finance Minister Dario Durigan temporarily shelved the cryptocurrency tax policy until the end of the October 2026 presidential election to avoid introducing "controversial" tax reforms in an election year. People familiar with the matter told Reuters that regulators and government officials had planned to hold a public consultation on cryptocurrency tax policies later this year. The plan may be postponed until 2027, but it is still "on the agenda." In June 2025, Brazil terminated the tax exemption policy on proceeds from the sale or transfer of small amounts of cryptocurrencies and changed to a flat tax rate of 17.5% on cryptocurrency capital gains, including gains from offshore and autonomous custody positions. According to previous regulations, profits made by Brazilian residents selling cryptocurrencies up to 35000 Brazilian reais (approximately US$6587) per month are exempt from capital gains tax; investors exceeding this amount are subject to a progressive tax rate of 15% to 22.5%.