The Central Bank of Brazil is soliciting opinions to establish rules for virtual asset service providers, with a 15% tax on overseas cryptocurrency income

The Central Bank of Brazil is preparing to finally release rules for virtual asset service providers (VASPs) operating in the country. The institution has started publicly soliciting opinions from market participants and individuals to formulate the rules that VASPs must comply with. The deadline is January 31, 2024.

Brazilian President Luis Inácio Lula da Silva has signed a law imposing a 15% tax on income from encrypted assets held by Brazilian citizens overseas, effective from January 1, 2024. Citizens who earn more than $1200 in income from transactions outside Brazil will be subject to taxation. The government aims to raise $4 billion through this measure in 2024.