Source: PortaldoBitcoin Original Title: Brazilian crypto sector celebrates regulatory progress of 2025, but fears new taxes Original Link:

Analysis of Regulatory Developments in the Brazilian Cryptocurrency Market

Leaders of cryptocurrency exchanges shared the progress of several new regulations expected in the Brazilian market by 2025 at the Blockchain Conference.

According to João Canhada, the founder of Foxbit, the formation of most regulatory frameworks is currently due to the behind-the-scenes efforts of industry companies and institutions. He pointed out that the initial versions of the regulations were much stricter.

“We are working behind the scenes to ensure that regulation does not become too burdensome,” he said, noting that recent decisions have prevented more restrictive scenarios for exchanges and users, such as a possible ban on self-custody of cryptocurrencies.

“The biggest mistake is not having Bitcoin. The second is not self-custody. If you don't have self-custody, you are not the owner but a hostage,” he emphasized.

The group also includes Ripple's Chief Compliance Officer Bel Longhi and the Director of Public Policy at a compliance platform, Júlia Rosin, chaired by Rodrigo Marinho from the Free Market Institute.

Global Regulatory Shift

Ripple's Compliance Officer Bel Longhi stated that 2025 will be a global turning point for the digital asset market. She pointed out that the year will be “decisive” due to new regulations from multiple countries, including the U.S. Genius Act and Europe's MiCA.

“These measures have brought clarity and allowed large institutions to enter the market. We see Swift, JPMorgan, BlackRock, and other traditional participants beginning to use blockchain,” she emphasized.

Bel pointed out that the Brazilian central bank has adopted a technology-neutral approach to international payments, allowing blockchain transactions to be processed in the same way as conventional foreign exchange operations. “Brazil is doing very well. This is very close to what Switzerland has done.”

The legal and regulatory head of a leading exchange detailed two major victories achieved by the department during this regulatory cycle: avoiding measures that could lead to new taxes and removing the global order book from foreign exchange regulation.

Regulatory Focus Points

Ripple's director issued an important warning about the impact of new regulatory taxes: “The issue is not paying taxes. It's paying 3.5% throughout the entire cross-border payment chain. This is huge and concerning.”

Bel also pointed out that the way the central bank incorporates the buying and selling of stablecoins into the foreign exchange market structure may push users towards more volatile assets. “This measure may ultimately encourage other higher-risk assets, and I'm not sure if that is the goal.”

Despite these concerns, she gave a positive assessment of the central bank's open attitude, pointing out that the institution is “willing to learn together.”

The public policy director of a certain compliance platform revealed that the company is strengthening its dialogue with the Ministry of Finance, particularly regarding tax issues, and is trying to arrange a meeting with Finance Minister Fernando Haddad to submit detailed data from the department. “The department does not oppose taxation. We just want a system that allows the market to survive.”

The executive pointed out another regulatory bottleneck: the lack of coordination among institutions. “The central bank, the National Taxation Bureau, and the Securities and Exchange Commission are independent. We seek unity, but that is not the reality. Creating a regulation that is not coordinated with another is useless.”

She pointed out the global incompatibility regarding the Travel Rule, which has led to Brazil requiring data, while other countries' legislation does not even require local companies to collect this data. “If an exchange in another country is not required to retain data, it will not submit it to you. This is a global issue. We need to elevate this discussion to an international level.”

A senior executive from a leading exchange emphasized that the department needs to prevent the creation of a trading tax similar to the old CPMF. He explained that in India, a 1% tax is charged on any transaction, which leads users to abandon local platforms. “A poorly designed tax could harm the entire market, drive away users, and stifle technology. This is the main risk.”

He also criticized the fact that certain products (such as margin operations) are restricted in the country. For him, this reflects an attempt to integrate the crypto sector into traditional banking logic. “Regulators need to understand that the crypto sector is not like any other sector. The community is strong, and technology easily avoids centralization. Over-regulation will hinder the visibility that central banks want over transactions.”

The founder of Foxbit also claims that domestic exchanges wish to offer products such as derivatives and credit, but currently “regulatory standards are too high and not allowed”.

For him, the challenge is regulatory, not technical: “In DeFi, I can get credit in seconds. In Brazil, I need contracts and multiple signatures. This is not efficient.”

Future Outlook

The director of Ripple commented on Congressman Lucas Ramos' bill regarding stablecoin regulation. According to her, this is an urgent issue as the IRS indicates that over 70% of cryptocurrency use in Brazil involves stablecoins.

The executive explained that the text protects consumers and provides security for issuers, requiring auditable reserves. However, she pointed out a missing point: “The bill does not guarantee the international interchangeability of stablecoins. They need to circulate freely between countries.”

She also pointed out that the bill needs to be coordinated with Central Bank Resolution No. 520, which has defined its own rules regarding reserves. “This resolution goes a bit far, but these are issues we can address with the central bank.”

Finally, the director of Ripple summarized the general sentiment: “This year's achievements outweigh the problems.”