The growth and popularity of cryptocurrency exchanges in Brazil has, in recent times, been ridden with challenges. This has mostly been due to the decision by policymakers to charge unappetizing tax rates on the digital currencies.
As the authorities struggle to amend and establish more palatable rates, crypto agencies are faced with a daunting choice to either persevere through the tough times or shut down in the South American country.
According to reputable news reports, Acesso Bitcoin and Latoex, two of the most prolific crypto exchange agencies in the country, have opted to discontinue their operations in the after a discouraging run of diminishing trade volumes and returns brought about as a result of the unfavourable tax policies already in place in the country.
Acceso Bitcoin shut down its operations due to a reduction in traffic and profits, whereas Latoex is alleged to have been incurring hefty fines in the running of their crypto business which has prompted the agency to cease operations hurriedly.
A statement from the Brazillian tax authority requires that all crypto agents in the country adopt a transparent policy by declaring precise records on all the transactions made every month failure to which they would be liable to a $350 fine.
Brazil is not the only country affected by stringent crypto regulatory policies. As later reports would then come to prove, Banco de Credito e Inversiones, a Chilean commercial bank recently shut down the accounts belonging to the country's first crypto exchange, Chilebit.
Late in 2019, the Brazillian Administrative Council of Economic Defense (CADE) ruled out that banks should cease offering financial services to crypto exchanges. This ruling was followed by Banco Bradesco's decision to close crypto exchange accounts. This happens to be one of Brazil's biggest banks hence the magnitude of crypto rejection by financial institutions in the country was monumental.
Elsewhere in the globe, authorities are becoming increasingly keen on cryptocurrency policy compliance. A drawn from the South Korean crypto trading monopoly, Bithumb, there has been an ongoing tug between the crypto platform and the country's national tax service whereby the tax service authority has fined them a whopping $69 million on crypto tax evasion.
On this note, the Australian tax office has imposed a 100% crypto tax on capital gains raised by Ethereum.
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