Brazilian Crypto Groups Warn Against Extending IOF Tax to Stablecoins

Brazilian crypto and fintech associations, representing over 850 companies, have raised concerns about the potential extension of the IOF financial transaction tax to stablecoin operations. According to NS3.AI, these groups argue that such a move could stifle innovation and contradict existing legislation. They emphasize that Brazil's Virtual Assets Law categorizes virtual assets separately from fiat currency, suggesting that a decree or administrative rule should not legally extend the tax to stablecoins. The issue is significant, as an auditor at Receita Federal noted that approximately 90% of Brazil's $6–$8 billion monthly crypto market transactions involve stablecoins.