The Brazilian government will tax stablecoins, with IOF becoming the focus.

Source: Exame Original Title: Stablecoins: taxation of 'digital dollar' enters the government's radar Original Link: The tax issues surrounding stablecoins have come under the regulatory gaze of the Brazilian government. According to Reuters, the government's focus is on taxing international payments made using these cryptocurrencies, which are typically pegged to the dollar.

The government assessment believes that there are tax loopholes in this type of transaction, which actually involves foreign exchange operations. Therefore, the idea under discussion is to tax the use of stablecoins through IOF (Tax on Financial Transactions). This possibility is currently being discussed by the Ministry of Economy.

Currently, trading stablecoins does not require paying IOF. The government believes that addressing this regulatory gap can also help increase federal tax revenue, a topic that has received more attention this year as the government seeks new sources of income.

Data released by the Federal Revenue Service shows that the cryptocurrency trading volume reached 22.7 billion reais in the first half of 2025. More than two-thirds of this is related to stablecoins, primarily the USDT issued by Tether, which is pegged to the US dollar.

The discussion on IOF taxation has gained more attention following the central bank's announcement of new regulations for the cryptocurrency market on November 10. Among these changes, the central bank has included stablecoin transactions within the framework of the foreign exchange market.

Through these rules, the central bank seeks to achieve “coordination of requirements between traditional transactions and virtual asset transactions”. Incorporating transactions into the foreign exchange market means that transactions must be reported to the authorities starting from May 4, 2026, opening the door for future taxation.

Experts have pointed out that the central bank's definition makes taxation of stablecoins possible. They emphasize that the tax authority does not belong to the central bank, but to the federal government and the IRS, which should make the decision on this issue.

Stablecoin taxation will gain greater momentum in 2026.

Bernardo Srur, the president of the Brazilian Cryptocurrency Association (ABCripto), stated, “I believe this discussion will not be shelved for long. We are talking about a specific tax, namely IOF, and equating it with foreign exchange transactions will naturally spark discussions about IOF.”

The chairman of ABCripto emphasized, “Whether it is a foreign exchange trading operation will depend on multiple factors, as they stated in the regulations. It is still unclear how the authorization for companies wanting to engage in cryptocurrency foreign exchange trading will work.”

Srur also stated, “The corresponding issue is the tax issue. I don’t see this topic calming down. There will be more discussions about IOF and foreign exchange in cryptocurrency. I believe that naturally, some tools will need to change, and this is not a quick thing. In 2026, we will definitely have such discussions.”