Brazil Introduces New Regulations: How to Legalize Undeclared Bitcoin and Crypto Assets

Source: PortaldoBitcoin Original Title: See how to regularize undeclared Bitcoin and cryptocurrencies Original Link: The Brazilian federal government has opened a new asset compliance pathway for Brazilians with unreported assets—this time, with special attention to those who own Bitcoin and other cryptocurrencies but have not reported them to the Federal Revenue Service. Law No. 15265/2025, published on November 21, 2025, established the Special Regime for Asset Updating and Compliance (Rearp), which is a program similar to a “controlled fiscal amnesty.”

The goal of the law is to allow taxpayers to update the value of their assets or legalize assets that have not been officially declared, including Bitcoin, stablecoins, and other cryptocurrencies, whether they are traded on foreign exchanges or self-custodied.

This topic has gained attention as Brazil strengthens its cryptocurrency reporting rules and aligns with international standards set by the OECD. With the new requirements for trading platforms (including foreign platforms) and the increasing data cross-checking by the central bank and tax authorities, the risk for those who continue to conceal their activities has significantly increased.

It is against this backdrop that Rearp emerges as the last chance for the compliance of compliant assets, allowing investors to avoid future penalties—as long as they accept to pay the required taxes and formally confirm their positions.

How Rearp Works

The project allows for two different operations: updating the value of declared assets and legalizing legally owned assets that have never been reported to the tax authorities. The second option is most relevant for cryptocurrency investors, as it legalizes assets held in international exchanges, personal wallets (such as hardware wallets), or assets that have never appeared in income tax declarations on DeFi platforms.

According to the rules, taxpayers must report the market value of their crypto assets by December 31, 2024 (the legally stipulated benchmark date). This amount is subject to a total tax of 30%, which includes a fixed income tax of 15% based on estimated capital gains and a penalty equivalent to 100% of the income tax (i.e., an additional 15% on the gains).

The validity period of Rearp is 90 days, calculated from the date the law is published in the Official Gazette on November 21, 2025. In other words, taxpayers must use these rules and legalize their assets by February 19, 2026, at the latest.

The government claims that by joining Rearp, investors have obtained a “criminal amnesty”: they have legalized their status, avoided the risk of being charged for concealment or tax evasion, and gained formal recognition of their assets by the Federal Revenue Service. The law also allows for installment payments of up to 36 months, making financial adjustments less burdensome.

The project has garnered attention among experts as it coincides with the tax authorities strengthening their oversight of foreign exchanges, which now must report information on Brazilian clients. This means that investors have now directly entered the regulatory scope of the authorities, as they previously believed that assets held abroad would be “invisible to the tax authorities.”

In the face of this situation, Rearp represents an opportunity for those who have accumulated Bitcoin or other cryptocurrencies over the past few years but have not reported them, whether due to a lack of understanding or a belief that tax authorities would not cover digital assets. The cost is high, but experts argue that it may be lower than the risk of future penalties.

Main Details of Rearp:

Deadline to Join: 90 days from the date the tax authority standardizes the project.

Basic Calculation: The market value of cryptocurrency assets on December 31, 2024.

Taxation: Total 30%, comprising 15% income tax + 100% penalty on income tax (an additional 15%).

Payment: You can choose to make a one-time payment or pay in installments over 36 months.