Brazil's IRS sets penalties for misreporting crypto transactions

According to recent news from the foreign media, the Brazilian Internal Revenue Service has focused on crypto transactions and transfers, and has formulated special fine rules to fine the false positives. The Brazilian Internal Revenue Service says it has received reports of $ 14 billion in transactions in the past few months. It is unclear how this number was reached and whether it was based solely on transfers or transactions. However, the IRS requires that filings only involve transactions that are related to the transaction. Taxation in Brazil is similar to the IRS. However, simply holding BTC will not result in a taxable event, although prices will fluctuate. Earlier news, the Brazilian Internal Revenue Service requires that from August 1, transactions involving cryptocurrencies such as Bitcoin must be reported to the Internal Revenue Service in accordance with the rules established by the 1888 normative instructions issued in May 2019.