$322.49 -6.21%
ETH · 31w

Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Acesso Bitcoin and Latoex Out of Business

Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Acesso Bitcoin and Latoex Out of Business

Tax regulations implemented even before dedicated legislation has been adopted have hit Brazilian cryptocurrency exchanges. Digital asset brokers failing to comply with the new reporting requirements face fines and the stricter rules are hurting smaller platforms, which are shutting down due to dwindling trading volumes.

Also read: Tax Agents ‘Confiscate’ Bitcoin From Criminal but Keep the Coins in His Wallet

Exchanges Struggle With Compliance Costs and Diminishing Returns

One of the affected exchanges, Acesso Bitcoin, points to the current situation created by the new regulations as the main reason for its decision to quit. “After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume,” said cofounder Pedro Nunes, quoted by the crypto news outlet Portal do Bitcoin. “We also feel that the market has cooled off for smaller exchanges,” he added.

Porto Alegre-headquartered Acesso Bitcoin recently advised clients on how to proceed with withdrawing their funds. Anyone who keeps bitcoin core (BTC) with the exchange should transfer the coins to a private wallet or another exchange. Customers who have balances in Brazilian real (BRL) can withdraw the money at any time in accordance with the terms and conditions that were applicable when the platform operated normally.

Latoex, formerly known as the São Paulo-based platform E-juno, is another cryptocurrency exchange that’s shutting down due to difficulties meeting the tax authority’s new requirements. Last week, the closure was confirmed by Diego Velasques, chief executive officer of Latoex Capital, the investment arm of the exchange which separated from the crypto trading platform in December.

Latoex (Latin America Token Excha...

Continue on
Recent news
ETH -6.21% · · 1h

Ethereum Gas Explained

A crucial element of the network is “gas,” which, if we understand Ethereum as a world computer, serves as the fuel for this computer’s applications and tran...
ETH -6.21% · · 6h

How To Find The Best Cryptocurrency To Invest?

The recent cryptocurrency boom has made many millionaires and a few billionaires. Some of these billionaires known as Whales have started to pump up the price and then dump the assets. Twitter in…