BRAZIL

On May 7, the Executive branch established the obligation for both individuals and legal entities operating with cryptoactives to submit information to the Federal Revenue Service. The measure, published in the Official Gazette as Regulation No. 1,888, is set to come into effect August 1, 2019.

Companies operating with cryptoactives must report to the Federal Revenue Service and provide information on the date and type of operation carried out, the amount of cryptoactives traded, the value of the operation in Brazilian reals as well as the service commissions charged for brokering the operation, if applicable.

The measure also stipulates fines to be levied if incorrect or outdated information is provided.

The regulation, which seeks to gather information on cryptographic operations, has been published as part of the Government’s initiative to combat crimes such as tax evasion, money laundering and financing of terrorism.